Reference no: EM132292691 , Length: word count:1100

Assignment - Group report: Understanding Virgin Media customer churn

Sir Richard Branson has just welcomed you into his spasious office at Virigin Media headquarters in London. Quite concerned with many of his customers switching to competitors he said: „Recently we have found out that many customers have left us for our competitors. My business intelligence department is abroad on a team-building event and until they come back I am concerned that more customers will leave. This situation requires immediate, insight-driven actions that will stop and hopefully reverse customer churn. Therefore, I have a couple of analytical tasks that I need solved in the best of your capacity. Once you create insight, I expect that you come up with a set of strategic and tactical recommendations on how to act to prevent or possibly reverse customer churn.

Task 1: Identify who of our current customers is next to leave Virgin Media. You are provided with two files (database extracts). The first one VirginMediaChurn_Jan2018.csv includes information about:

• Customers who left Virgin Media in January 2018 - the column is called Churn
• Services and extras that each customer has signed up for - Landline, MultipleLines, Broadband, Powerline Kit, Online Backup, Gadget Rescue, Cable TV and Video On Demand
• Customer account information - how long they have been a customer (tenure), contract type, payment method, paperless billing, monthly charges, and total charges
• Demographic info about customers - gender, employment and marital status and if they have any dependents

The second file is VirginMedia_Feb2018.csv includes everything listed above except Churn. Building on the knowledge obtained from the first file, try to predict who of our current customers is likely to leave. To build prediction model, choose the best prediction technique, explain which variables are most important to predicting churn and establish who will churn. Provide a detailed explanation of your analytical approach - i.e. workflow model and its elements. Explain step by sep what was done to get the best possible predictions. Provide detailed overview of the outputs and elaborate your findings. Provide links to your workflows and files (be explicit in which file you have saved predicted churners). Do not forget that my DBI team is very picky so make sure you do a rock solid modelling and analysis.

Task 2: Once you have established who is likely to churn, check if different types of churners exist. If so, establish how many segments there are, profile identified segments using available data and give appropriate names to the segments. Same like in the previous task, elaborate your approch and your findings. Provide link to your workflow model and files (be explicit in which file you have saved your classification results).

Task 3: I also want to know WHY our customer leave. Unfortunately, we cannot see this in our databases and we have no time to commission market research. Instead, I would like you to see what have people tweeted recently about VirginMedia. This might signpost to the potential churn causes. I would like to see key themes and sentiment of the tweet corpus mentioning our business name. Anything above this minimum requirement would be a big plus. Same like in the previous tasks, elaborate your approch and your findings. Provide links to your workflow models and files.

Once you have solved all the tasks, you need to provide recommendations on what actions VirginMedia should take to prevent and potentionally reverse churn. While you have creative freedom, your recommendations have to be linked with the insight you have created and other external research. Please note that there will be two audiences reading this report. First audience is made of myself and my board of directors. Given that we are extremely busy we do not like technical and leghty reports that require hours of reading. Instead we prefer intuitive infographs, with very little text that can be easily understood. We are willing to read up to 3 infographic slides. Please put these in the executive summary so that we do not have to struggle finding them in your report. The second audience is my DBI team. They will be interested to throroughly read and inspect your analytical approach and findings. Therefore, be elaborate and precise and provide links for my team to inspect your model workflows, working files and outputs. Justify your decisions in building models and demonstrate that you know how different widgets/tools function. And once again, bear in mind you do all of these analyses to help us stop the churn. Good luck!"

Note - REQUIRED TO BE COMPLETED is TASK 3 ONLY.

Attachment:- Assignment File.rar