Introducing a common product hierarchy for portfolio analysis, it was made possible to analyze contract changes at every level of the product portfolio. This way, individual brands could also be compared together on those levels (e.g. product group).
This also allowed analying the termination of old contracts and the simultaneous closing of new contracts (rotational churn) within a product group. The customer’s product management was thus able to draw numerous conclusions about customer behavior within the brands and flexibly compare the brand strategy to the operating result. The effects of Rotational Churn caused by the introduction of new services within the latest contracts, could thus be measured immediately after introducing portfolio management.
Customer Lifetime Value (CLV) could also be shown by individually distributing contract duration per customer or aggregated on the product hierarchy levels (simply put: distribution * sales). Therefore, it was no longer necessary to resort to individual averaging or precalculations. Also, the CLV could be compared between brands.