I need help with this case studyWe are "Pet Rock" $-$ a $$30$ monthly subscription service where we send a new, decorative rock to your doorstep

every month, along with a personalized name, backstory, and care instructions. Each rock comes with a

bespoke carrying case and a complimentary side of artisanal dust. Additional tiers include:

"Rockstar" $$\frac{35}{m}-$ includes a monthly rock concert $($pre$-$recorded video of rocks being gently tapped$)$

"Rockafella" $$40/$m $-$ includes a personalized rock butler $($AI chatbot that responds to rock$-$related queries$)$

All $3$ Pet Rock plans include a $14$ day trial for new users after which users convert to paying members.

Retention curves are provided on a different sheet in this document.

To provide value to high intent customers the company has decided to test its new "Rockforever" subscription,

in which customers can commit to a full year for a steep discount: only $$199$ a year.

The test has run for a total of $33$ days. Initially the company assigned $10\%$ of traffic to the control group and

$10\%$ to the variant group, but the PM increased the allocations to $25\%$ each after $10$ days after ensuring no

bugs were present in the test. Due to technical limitations$,$ only "Pet Rock" tier customers are present in the AB

test.

The Pet Rock company has currently no performance data on annual subs but we do have information on some

public competitors: PeTATO ships pet potatoes to its customers on a monthly basis, and reports an average

churn rate of $30\%$ on its monthly service and $40\%$ for annual members.

Based on the data provided make a new sheet with a financial model that shows the impact of launching

"Rockforever" as widely available subscription plan.

Please note any assumptions you make.

Here are associated tables:

Month Retention Rates

Pet Rock Rockstar Rockafella

$153\mathrm{.}35\%54\mathrm{.}14\%54\mathrm{.}02\%$

$260\mathrm{.}69\%61\mathrm{.}22\%61\mathrm{.}38\%$

$369\mathrm{.}75\%69\mathrm{.}76\%68\mathrm{.}92\%$

$473\mathrm{.}67\%74\mathrm{.}24\%73\mathrm{.}26\%$

$574\mathrm{.}23\%74\mathrm{.}82\%75\mathrm{.}41\%$

$677\mathrm{.}79\%78\mathrm{.}35\%77\mathrm{.}88\%$

$779\mathrm{.}68\%80\mathrm{.}30\%80\mathrm{.}14\%$

$881\mathrm{.}25\%81\mathrm{.}70\%80\mathrm{.}95\%$

$981\mathrm{.}34\%82\mathrm{.}08\%81\mathrm{.}22\%$

$10+83\mathrm{.}61\%84\mathrm{.}33\%83\mathrm{.}85\%$

Control Variant

Unique visitors $1,9981,863$

Total gross conversions $1,1191,023$

Pet Rock trials $1,11876$

Pet Rock trials $(14$ day lag$)44430$

Pet Rock trial conversions $24716$

Pet Rock refunds $50$

Rockforever trials $0945$

Rockforever trials $(14$ day lag$)0406$

Rockforever trial conversions $0160$

Rockforever refunds $044$