Customer Value analysis iscritical for a good marketing and a customer relationship management Stratergy. An important component of this stratergy us the customer retention rate. Customer retention rate has a strong impact on the customer lifetime value, and understanding the true value of a possible customer churn will help the company in its customer relationship management.Conventional statistical methods are very successfull in predicting the churn.
What does "Churn"mean?
"Churn" is a common phenomenon that occurs in telecom Industry. By "Churn" we mean those customers, who will be leaving us in near future.
If we able to predict in advance,that the attributes of customers, who will be leaving us in near future.
Predicting the churn also helps us to approximately know the life time value of customers. The other application is for Prioritizing Customer Segments
The Goal of this Case Study is to apply analytical techniques to predict a customer churn and analyse the churning and non-churning customers by using data from an internet connection company. Like most of the companies that supplies goods and services over the internt,this company mainly deals with customers remotely. TYhis can make it difficult to determine whether a customer is satisfied with the company or not. This, in turn, makes preventing churn a particlarly challanging task. One tried and tested method of retaining customers is to offer them incentives to stay.
Ideally the company would have a clear and early indication of customers which are likely to churn, when and why, so they can focus their resourceson just targeting them with the right offer at the right time.
Objective Client wants to know what the factors which contributeto churn are. They would like to have a system through which they could identify such customer which could also help them decide who the one who could not be retained are and the customer who could retained what should be the approximate incentive for them. They have goal to bring down the churn rate to the minimum.
Data Availability
- Case_study_data.xlsx
- Detailed data dictionary for both data sets read for more..Data_dictionary