Financial Modeling and Business Case Development Overview The financial model is a multi-year cash flow model based on detailed assumptions about the product, customers, marketing budgets, and marketing program effectiveness collected from historical data, market research and experience. The model tracks a prospect from solicitation to sale to customer retention It establishes a base case and enables you to test investment trade-offs, identify high leverage opportunities, break-even points, performance against plan and “what-ifs.” Modeling allows you to evaluate the big picture, with the ability to understand differences in performance segmented by market and product. The model evolves over time, becoming increasingly accurate and relevant, as it is continuously updated with future program results and further customized. It serves as an excellent custom reporting device (I.e. automated scorecard). A Couple of Examples... GM Card: Provided business analysis for the GM Card program in the U.S., as well as subsequent models for launches in Canada, Mexico, England and Brazil. The models provide a complete picture of the company, incorporating assumptions about the product, economic factors, banking fees, marketing budgets and the effectiveness of each marketing channel. As a result of these models, GM confidently expanded into Canada and England, cautiously entered Brazil and avoided Mexico. Different product configurations were offered in each country based on maximizing the results from each financial model. After the launch, the U.S. model was updated to include actual data and drove decision making for ten years, including the decisions to: - Discontinue the partner program - Eliminate the gold card product - Shift to a new tiered rewards program Bristol-Myers Squibb: Our custom financial and marketing planning tool sized the market for a new drug based on population demographics, mortality rates, and treated and untreated universe by disease for which the drug can be marketed. It incorporated details about media spending, DTC, professional spending, and a compliance and persistency program. The user could then test various marketing strategies and budgets, and learn the expected sales mix and financial results.