BUSINESS MODEL TO STATISTICAL MODEL

VARIABLES
1 Classification Labels
Customer churn

2 Customers demographic info

Gender 
SeniorCitizen
Partner 
Dependents

3 Customer account information

Tenure (no of months customer stayed with company)
Contract (contract term)
Plan (type)
PaperlessBilling
PaymentMethod 
MonthlyCharges

4 Customer services booked

PhoneService
MultipleLines 
InternetService 
OnlineSecurity
OnlineBackup
DeviceProtection 
TechSupport 
StreamingTV 
StreamingMovies 

HYPOYTHESIS
1.The longer the contract duration the less likely it is that the customer will churn and potentially values

2. Customers are willing to cancel simple contracts with few associated product components quicker and

3. Customers with spouses and children might churn less to keep the services running for their family.

4. Tenure, contract duration terms and number of additional services are assumed to be among the mos

5. More expensive contracts lead to increased churn as the chances to save money by changing provider

6. Senior citizens tend to churn less due to the extended effort associated with terminating contracts.
 BUSINESS MODEL TO STATISTICAL MODEL
MEASUREMENT TYPE OF DATA HOW DATA LOOKS

Yes/ No categorical Y/N

Male/Female categorical M/F

Yes/ No categorical I/0
Yes/ No categorical I/0
Yes/ No categorical I/0

3/6/1/>1year categorical A/B/C/D

Monthly/ Half yearly/yearly categorical A/B/C
Starter/Standard/Premium/Super categorical A/B/C/D
Yes/No categorical I/0
Credit card/ Bank transfer/Cheque categorical A/B/C
600/1100/1770/2360 categorical A/B/C/D

Yes/ No categorical I/0

Yes/ No categorical I/0
Broadband/ Fiberoptic categorical A/B
Yes/ No categorical I/0
Yes/ No categorical I/0
Yes/ No categorical I/0
Yes/ No categorical I/0
Yes/ No categorical I/0
Yes/ No categorical I/0

it is that the customer will churn and potentially values contracts with reduced effort.

ts with few associated product components quicker and more often than complexer product bundles

urn less to keep the services running for their family.

f additional services are assumed to be among the most important drivers of churn.

urn as the chances to save money by changing providers might be higher.

tended effort associated with terminating contracts.

 BUSINESS MODEL

STEP 1
Identify the business problem

STEP 2
Stakeholders

STEP 3
Identify probable business problems

STEP 4
Prepare business model

STEP 5
Translate to stastical model
STEP 6
Identify the data source

STEP 7
Collect the data

STEP 8
Prepare the data
 BUSINESS MODEL

Customer churn in telecom DEPENDANT VARIABLE

Customers demographic info INDEPENDENT VARIABLE

Gender 
SeniorCitizen
Partner 
Dependents

Customer account information INDEPENDENT VARIABLE

Tenure (no of months customer stayed with company)
Contract (contract term)
Plan (type)
PaperlessBilling
PaymentMethod 
MonthlyCharges

Customer services booked INDEPENDENT VARIABLE

PhoneService
MultipleLines 
InternetService 
OnlineSecurity
OnlineBackup
DeviceProtection 
TechSupport 
StreamingTV 
StreamingMovies 

CEO /Telecom unit heads

(latent independent variables)

Diagram

Excel sheet
Ebscore , google scholar

10 case studies

Remove irrelevant data

Clean the data
Identify patterns and inconsistencies
Skewness/ outliers/missing values