Act on the result
Record the cohort, period, ex-tax contribution per retained customer and programme-cost assumptions with the decision.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Teams testing whether a proposed retention programme covers its incremental cost.
Outputs
Additional retained customers and incremental contribution after programme cost.
Start here
Use one cohort and period; treat proposed retention as a scenario, not a forecast.
Use a different tool when: Do not use this to estimate bounded contribution value across a chosen retention horizon; use Customer Lifetime Value Planner for that decision. Use this tool to test whether a proposed retention improvement covers its programme cost for one cohort.
Cash & growth
Customer Retention Profit Impact: additional retained customers and incremental contribution after programme cost.
Additional retained customers and incremental contribution after programme cost.
Amounts use the same currency as your inputs. No currency conversion is performed.
Decision assumptions
Use one consistent period, contribution and currency basis.
Your numbers stay in this browser
Whole customers in the decision cohort.
Observed or planning baseline for the same cohort and period.
Scenario assumption to test, not a forecast or causal claim.
Contribution retained for one additional customer on the selected period basis, excluding indirect tax. Use one consistent currency and indirect-tax basis.
Incremental programme cost for the same cohort and period, excluding indirect tax. Use one consistent currency and indirect-tax basis.
Decision result
Every result is produced by the registered customer and marketing engine.
- Additional Retained Customers
- 10
- Incremental contribution
- 1,500.00
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Baseline retention-500.00Baseline
Proposed retention1,500.00Not available
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Additional Retained Customers
Additional Retained Customers
customers × (proposed retention rate − baseline retention rate)10 unitsResult10
Reports units for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.
Customer Retention Profit Impact Planner formulas →Inputs used by these formula steps
- Additional Retained CustomersCustomers
- 100
- Additional Retained CustomersBaseline Retention Rate
- 0.7
- Additional Retained CustomersProposed Retention Rate
- 0.8
- Additional Retained CustomersContribution Per Retained Customer
- 200
- Additional Retained CustomersProgramme Cost
- 500
Incremental contribution
Incremental Contribution
additional retained customers × contribution per retained customer − programme cost1,500.00Result1,500.00
Reports money for the declared cohort and period using the entered attribution and contribution basis. The engine retains raw precision; formatting never feeds calculation.
Customer Retention Profit Impact Planner formulas →Inputs used by these formula steps
- Incremental ContributionCustomers
- 100
- Incremental ContributionBaseline Retention Rate
- 0.7
- Incremental ContributionProposed Retention Rate
- 0.8
- Incremental ContributionContribution Per Retained Customer
- 200
- Incremental ContributionProgramme Cost
- 500
Inputs used
- Customers
- 100
- Baseline Retention Rate
- 0.7
- Proposed Retention Rate
- 0.8
- Contribution Per Retained Customer
- 200
- Programme Cost
- 500
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| baselineRetentionRate | Observed or planning baseline for the same cohort and period. | decimal share of cohort retained/selected period | 0 to 1 | Required | 0.7 |
| contributionPerRetainedCustomer | Contribution retained for one additional customer on the selected period basis, excluding indirect tax. Use one consistent currency and indirect-tax basis. | currency units/additional retained customer/selected period, excluding indirect tax | 0 to 10000000 | Required | 200 |
| customers | Whole customers in the decision cohort. | customers/cohort | 0 to 100000000 | Required | 100 |
| programmeCost | Incremental programme cost for the same cohort and period, excluding indirect tax. Use one consistent currency and indirect-tax basis. | currency units/cohort/selected period, excluding indirect tax | 0 to 10000000 | Required | 500 |
| proposedRetentionRate | Scenario assumption to test, not a forecast or causal claim. | decimal share of cohort retained/selected period | 0 to 1 | Required | 0.8 |
Customer Retention Profit Impact: additional retained customers and incremental contribution after programme cost.
Use the result to compare baseline and proposed retention assumptions for one cohort and period, not as a retention forecast.
Formula summary
- Primary formula
- incremental contribution = customers × (proposed retention − baseline retention) × contribution per retained customer − programme cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest the proposed retention rate and contribution per retained customer before approving programme spend.
When this estimate can be misleading
- Baseline and proposed retention rates are user-entered scenarios, not forecasts or causal estimates.
- Use one cohort and period; enter contribution per retained customer and programme cost excluding indirect tax.
- The result excludes acquisition, serving-capacity and secondary behavioural effects unless reflected in the entered contribution and cost.
- This is educational decision support, not financial, tax, legal or accounting advice.
- Use the result to compare baseline and proposed retention assumptions for one cohort and period, not as a retention forecast.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Loyalty Program Economics
Compare incremental retention contribution with reward and programme costs over a finite cohort horizon.
Read guide
Frequently asked questions
How do I test whether a proposed retention improvement covers its programme cost for one cohort?
Record the cohort, period, ex-tax contribution per retained customer and programme-cost assumptions with the decision.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.