Income Forecasting Model

MAY 2010

Forecasting the income of the roadside assistance division of the AA is a complex task given the importance of a number of factors including new sales generation through multiple channels, single products and product bundles, different policy options and payment types and the renewal behaviour of existing members.  Andrew worked closely with the AA to develop a powerful model with strong emphasis on clarity, consistency and usability.  The model includes a number of sophisticated forecasting techniques including customer segmentation, price elasticities and member loss / renewal modelling to project the membership base forward and generate a detailed cash and P&L income forecast.