CBAP · Question #420
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…
The correct answer is A. Impact. An impact map is the appropriate technique to connect business goals to the actors, impacts, and deliverables needed to achieve measurable outcomes like a 15% sales increase and 10% retention improvement.
Question
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:
As the new pricing structure was being implemented, the chief executive officer (CEO) of the company wanted to change the premiums and associated discounts offered to customers. The BA investigated the cost, anticipated benefits and the length of time the change would likely take to complete before presenting the results back to the CEO. What type of analysis has the BA just conducted?
Options
- AImpact
- BCapability
- CMarket
- DDocument
How the community answered
(21 responses)- A81% (17)
- B5% (1)
- C10% (2)
- D5% (1)
Why each option
An impact map is the appropriate technique to connect business goals to the actors, impacts, and deliverables needed to achieve measurable outcomes like a 15% sales increase and 10% retention improvement.
An impact map visually links business goals to the actors who influence those goals, the behavioral impacts expected from those actors, and the deliverables that produce those impacts. For an insurance pricing model restructure, it directly traces how discount strategies connect to the measurable business outcomes of increased sales and improved customer retention within the one-year timeframe.
A capability map shows what an organization can do at a strategic level, not how specific initiatives drive measurable behavioral or financial impacts.
A market map represents competitive or market landscape positioning and is not suited to mapping internal initiative-to-outcome relationships.
A document map focuses on existing documentation artifacts and their relationships, not on linking strategic goals to delivery outcomes.
Concept tested: Impact mapping to link business goals and outcomes
Source: https://www.impactmapping.org/drawing.html
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