Expected Lost Customer Equity™ From Defected Customers, Future Periods

This computation determines the loss in future equity represented by customers lost in the current period. If this loss differs significantly from the loss during other periods because of changes in retention rates, then this can adversely affect the current period’s Customer Equity™.

Measure:
	Expected Lost Customer Equity™ From Defected Customers, Future Periods = where: T = the current period NT-i = the number of customers acquired i periods ago rT-1-i,i = the proportion of customers acquired i periods ago that still remain at the end of T-1 1-rT,i = the attrition rate for the current period for customers acquired i periods ago mT+k,i = the margin for period k for customers acquired i periods ago cT+k,i = the marketing and customer service costs for period T+k for customers acquired i periods ago d = the discount rate
Example:
	Using the survival and margin forecast in Table Balance-3, Table Flow-4 shows the results of this computation. Compiling the totals from each component of Customer Equity™ flow results in the Customer Equity™ flow statement which is presented in Table Flow-5.