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KimWarren

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Reply with quote  #1 
How can I model customers who subscribe to a service, but may not renew?
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KimWarren

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Posts: 104
Reply with quote  #2 
See the demo model at http://sdl.re/SubscriptionRenewal for an annual-subscription case. Customers move from '1st-year subscribers' to 'later-year subscribers'. 

Technical point ... notice the formulae for 1st-year customers renew this month and total customers renew this month which include a 12-month delay of the in-flow to the 2 Stocks. Both items need to know what their values are before the first 12 months have happened, so during that period are set to 1/12 of the Stock [on average 1/12 of the initial Stock of customers are due to renew each month]. In practice, if you have actual values for the renewals due each month during the first 12 months, then use those values instead.   
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