GoCel Ltd.
CUSTOMER CHURN & ANALYTICS
AN OBJECTIVE REPORT ON ANALYTIC CAPABILITIES
& CUSTOMER CHURN
Business Analytics | 31-Mar-2018
Consultants:
02026474
620111265
620016270
620114740
,Table of Contents
Executive Summary......................................................................................... 1
Organization’s Background..............................................................................2
History........................................................................................................... 2
Products and Services...................................................................................3
Competitors.................................................................................................. 3
Customers..................................................................................................... 3
Performance.................................................................................................. 3
Business case................................................................................................... 3
Business Problem............................................................................................. 4
CRISP-DM Methodology / Approach..................................................................5
Business Understanding................................................................................ 6
Data Understanding...................................................................................... 7
Data Preparation........................................................................................... 8
Model Development & Presentation..............................................................9
Evaluation & Interpretation of the Model Results........................................10
Confusion Matrix...................................................................................... 12
Assessment of the Model.........................................................................12
Segmentation of prepaid base.................................................................12
Recommendations for Deployment................................................................13
Next Steps...................................................................................................... 14
Invoice............................................................................................................ 16
....................................................................................................................... 16
References..................................................................................................... 17
Executive Summary
Metric Masters Limited has been contracted to evaluate and objectively
report on the status of GoCel Limited’s data analysis capacity. The objective
PAGE 1
, of this project is to assist the company in addressing its business problem of
“customer churn”. This report will examine the reason 26% of GoCel’s
customers churn, despite its extensive marketing and large share of the
market in the telecommunications industry.
Having had rapid growth in the customer base over the years, GoCel now
needs to focus on minimizing revenue loss due to customer churn. Metric
Masters will show how this can be achieved through analytics, by identifying
the characteristics associated with customers who have previously churned.
The CRISP-DM method of data mining was used for this project. This included
6 phases: business understanding, data understanding, data preparation,
modelling, evaluation and deployment. Each phase is discussed in detail
within this report. Throughout the modelling phase, it was identifed that
some characteristics which impacted a customer’s propensity to churn were:
Subscription type: prepaid or postpaid
Total Charges:
Technical Support:
Tenure:
Payment Method:
Internet Service Type:
Data analysis proved critical in delivering a predictive model which is useful
in identifying and targeting the potential churn customers. GoCel has
extensive data available on its customers’ behavioral patterns and should
utilize this data to help solve its customer churn problem. It is more costly to
gain new customers than it is to retain existing customers; reducing churn.
Based on the fndings, we have included recommendations on how this new
knowledge can be used to address customer churn at GoCel Limited.
Organization’s Background
HISTORY
Telecommunications giant, GoCel Limited is a mobile phone and data network
provider currently operating in 30 countries in the Caribbean (including
Jamaica), Central America as well as the South Pacifc. The company
launched its operations in Jamaica in April 2001, at which time, the
telecommunications industry in Jamaica had been monopolized and wireless
service was controlled by the British company Cable & Wireless. Being a
PAGE 2
CUSTOMER CHURN & ANALYTICS
AN OBJECTIVE REPORT ON ANALYTIC CAPABILITIES
& CUSTOMER CHURN
Business Analytics | 31-Mar-2018
Consultants:
02026474
620111265
620016270
620114740
,Table of Contents
Executive Summary......................................................................................... 1
Organization’s Background..............................................................................2
History........................................................................................................... 2
Products and Services...................................................................................3
Competitors.................................................................................................. 3
Customers..................................................................................................... 3
Performance.................................................................................................. 3
Business case................................................................................................... 3
Business Problem............................................................................................. 4
CRISP-DM Methodology / Approach..................................................................5
Business Understanding................................................................................ 6
Data Understanding...................................................................................... 7
Data Preparation........................................................................................... 8
Model Development & Presentation..............................................................9
Evaluation & Interpretation of the Model Results........................................10
Confusion Matrix...................................................................................... 12
Assessment of the Model.........................................................................12
Segmentation of prepaid base.................................................................12
Recommendations for Deployment................................................................13
Next Steps...................................................................................................... 14
Invoice............................................................................................................ 16
....................................................................................................................... 16
References..................................................................................................... 17
Executive Summary
Metric Masters Limited has been contracted to evaluate and objectively
report on the status of GoCel Limited’s data analysis capacity. The objective
PAGE 1
, of this project is to assist the company in addressing its business problem of
“customer churn”. This report will examine the reason 26% of GoCel’s
customers churn, despite its extensive marketing and large share of the
market in the telecommunications industry.
Having had rapid growth in the customer base over the years, GoCel now
needs to focus on minimizing revenue loss due to customer churn. Metric
Masters will show how this can be achieved through analytics, by identifying
the characteristics associated with customers who have previously churned.
The CRISP-DM method of data mining was used for this project. This included
6 phases: business understanding, data understanding, data preparation,
modelling, evaluation and deployment. Each phase is discussed in detail
within this report. Throughout the modelling phase, it was identifed that
some characteristics which impacted a customer’s propensity to churn were:
Subscription type: prepaid or postpaid
Total Charges:
Technical Support:
Tenure:
Payment Method:
Internet Service Type:
Data analysis proved critical in delivering a predictive model which is useful
in identifying and targeting the potential churn customers. GoCel has
extensive data available on its customers’ behavioral patterns and should
utilize this data to help solve its customer churn problem. It is more costly to
gain new customers than it is to retain existing customers; reducing churn.
Based on the fndings, we have included recommendations on how this new
knowledge can be used to address customer churn at GoCel Limited.
Organization’s Background
HISTORY
Telecommunications giant, GoCel Limited is a mobile phone and data network
provider currently operating in 30 countries in the Caribbean (including
Jamaica), Central America as well as the South Pacifc. The company
launched its operations in Jamaica in April 2001, at which time, the
telecommunications industry in Jamaica had been monopolized and wireless
service was controlled by the British company Cable & Wireless. Being a
PAGE 2
