Lumen Learning: Finding 19% Growth
Consulting
medium45 min0 submissionsFlipkart
Scenario
Lumen Learning (edtech, India) has grown at 2% a year for three years. The new CEO has committed the board to 19% growth — a gap of roughly ₹167 Cr of incremental revenue in year one.
What we know.
- Current revenue: ₹982 Cr
- 3567 active customers
- Annual customer churn: 20%
- Estimated share of existing customers' relevant spend: 34%
- The core market is growing at 2% — so the company is roughly holding share
The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.
Supporting data
market
- core market growth pct
- 2
customers
- active customers
- 3567
- annual churn pct
- 20
- share of wallet pct
- 34
- average revenue per customer
- 275301
current state
- growth pct
- 2
- revenue cr
- 982
- revenue gap cr
- 167
- target growth pct
- 19
Your task
Build the growth case. Provide:
- Analysis — where growth could come from, sized.
- Risks — of the options you recommend and reject.
- Recommendation — a prioritised growth portfolio for the next 24 months.
Ready to move forward? Up next: Solstice Travel: Plenty of Demand, Nothing to BuyNext question
How you'll be graded
100 points, 60% to pass.
- evaluation25
- recommendation25
- option generation25
- problem structuring25
Hint
Reveal suggested structure
Decompose growth into five sources and size each:
- Retention — reducing 20% churn
- Penetration — raising 34% share of wallet
- New customers in existing segments
- New products to existing customers
- New geographies or segments
Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.