Markov Model Mania (or Will You Stay in Business?)
We are coming to the end of the year so it is a good time to reflect on where we have been and start thinking about next year. And to make the thinking definite, let’s suppose that you estimate that 85% of your customers will stick with you next year and 10% of your competitor’s customers will switch and become your customers. Is it time to open the champagne and give everyone a big holiday bonus???
And just to make the math easy, let’s just suppose that you presently have 1000 customers and your competitors have a total of 1000 customers as well.