Revenue and Financial Modeling.ppt

Revenue & Financial Modeling
© 2000 Arthur Andersen. All rights reserved.
Overview
Revenue Modeling
Financial Modeling
2
© 2000 Arthur Andersen. All rights reserved.
Method for Revenue and Financial Modeling
The financial scenarios are developed as a result of three steps.
Market Sizing
Entire Market Size
Sector Market Size
Target Customer Group
Awareness for Offering
... (see following slidesfor details)
New customers
Recurring customers
Revenue Modeling
Revenue Sources
Revenue Streams
Revenue Model Scenarios
Financial Modeling
Cost Structure
Cost Streams
Financing Szenarios
P&L, BS etc.
Financial Model Scenarios
3
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
Channels: Categorization of channels
Direct channels
Sales force
Call Center
Traditional Mail and eMail
Interactive Television
Indirect channels
Partners
4
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
The number of expected customers is derived top-down, in multiple stages in which each stage needs facts or at least an explanation of the change in volume
The „world“: Overall volume of population or businesses
Target group: Overall volume of target customer group
Reach based on promotion: Volume of potential customers aware of product or service
From this point multiple tracks derive:
Reach based on channel: Volume of potential customers based on channel (Sales force, iTV, , mobile phones, web kiosks etc.)
Visitors: Volume of potential customers that have contact based on channel
Customers: Volume of first-time customers
Retained customers: Volume of customers showing loyalty
5
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
6
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
Calculation of customer base
7
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
Calculation of advertisement fees
8
© 2000 Arthur Andersen. All rights reserved.
Market Sizing
Calculation of brand building costs
9
© 2000 Arthur Andersen. All