CBAP Question #417: Real Exam Question with Answer & Explanation

An insurance company wants to increase sales by 15% and customer retention by 10% within 1 calendar year. Various strategies to achieve this were considered and a restructure to the existing pricing model is selected to help achieve these goals. A business analyst (BA) works with stakeholders such as actuaries, product specialists, sales staff, risk managers, and underwriters who agree to applying varying levels of discounts to customers based on: - Total annual premium the customer has with the company (Financial worth) - Time with the insurance company (Loyalty) Various financial models are considered but the stakeholders agree that an initial applicable discount is determined based on the customer's overall premium: The percentage of the maximum possible discount available to the customer is adjusted based on time with the company: If within the first six months, customer retention increased by 5 % and sales increased by 6%, then when will the desired sales and retention goals be achieved assuming the trend continues at the same pace?