Using percentages to calculate resubscription rates

Speaker 1: Hi Min, I wonder if you can help me do some analysis.

Speaker 2: OK, what about?

Speaker 1: We've got the sales people here contacting the schools by telephone and contacting them by email.

This is a list of all the schools that have been contacted by telephone.

Speaker 2: Yeah.

Speaker 1: If you can figure out the percentage of the ones that are resubscribed.

Speaker 2: Yeah. So what am I looking at here?

These obviously are all of our schools, these are our sales people and these are the calls they made.

Speaker 1: Yeah.

Speaker 2: OK.

Speaker 1: What we're trying to figure out is what is the most effective way of a resubscription.

Speaker 2: Yeah, I should be able to do that.

Speaker 1: OK, great, thanks.

Speaker 2: No worries. (TO AUDIENCE) OK, so here I have the sales team's results from 50 calls each.

I need to work out how likely it is that a phone call versus an email will turn into a resubscription.

So first of all Frank. He made 50 calls and 2 resubscribed.

And Tom, he made 50 calls, and 2 resubscribed from his phone calls.

Lastly, Rita looks a bit more successful, because 8 people resubscribed.

OK, good, so now that I've got all the information I need, I can add it all up.

2 plus 2 plus 8 is 12, so that's 12 out of 150 calls turned into a resubscription.

Speaker: So the likelihood of a call turning into a resubscription is 12 out of 150.

So to turn this into a percentage I need to divide 12 by 150 and I get 0.08.

And then I multiply that by 100 to work out the percentage, so that's 8%.

Now I've called up the information about emails and as it turns out, of 150 emails we send to clients 58 people resubscribed so that's 58 out of 150.

So to turn this into a percentage I need to divide 58 by 150 and that is 0.38666.

Now if I multiply that by 100, I get 38.666%.

Well, I can round that up to 39%.

Speaker 1: Hey, Paul.

Speaker 2: Hi.

Speaker 1: So, I've done the research, and as it turns out, on calls, we have an 8% resubscription rate.

Speaker 2: OK.

Speaker 1: But with emails, it gets us a 39% resubscription rate.

Speaker 2: Wow, so what do you think we should do?

Speaker 1: Well, I think we should compare the cost of the two methods and possibly also ask our customers what they prefer.

Speaker 2: Can you do that?

Speaker 1: Yeah, I should be able to.

Speaker 2: Fantastic, thank you.

Speaker 1: No worries.