TelTek Project Submission

Name – DEEPSI JAIN

Q-1) What is the RFM score of customer 26 and customer 150.

For Customer 26: For Customer 150:

Recency (R) score:16-02-2017 Recency (R) score: 05-08-2017

Frequency (F) score : 3 Frequency (F) score : 4

Monetary value (M) score: 595 Monetary value (M) score: 375
Q-2) Match the targeting strategies with the RFM scores given in the table.
RFM scores Targeting strategy
A. Customers with all the recency, frequency and monetary value i. TelTek should send them notifications about new TV shows
scores of 3 and 4 such as 4-4-4,4-4-3,3-4-3 being screened on its OTT service partner’s platform. In this way,
the firm can make the customers consume more data, eventually
pushing them to recharge more frequently.

B. Churned best customers with low recency scores and high ii. TelTek should ensure that these type of customers have a
frequency and monetary scores such as 1-4-4, 1-3-4, 1-3-3 great experience. Any Conflict or complaint should be resolved
promptly.

C. Customers with low-frequency scores and high recency iii. The firm should use upselling strategy to make these
and monetary value scores such as 4-1-4, 3-1-4, 3-1-3 customers upgrade their existing subscription or subscribe for
additional services.

D. Customers with low monetary value score and high recency iv. The company should develop a strategy to reacquire and re-
and frequency scores such as 4-4-1, 3-4-1,3-3-1 engage these type of customers by offering them incentives and
great customer experience

A - _2__ , B - _4___ , C - ___1_ , D - ___3__

Q-3) Which cluster comprises of the most valuable customers? What targeting
strategy should the company use for these type of customers?.

Cluster: Because these customers are thought to generate more revenue.

Targeting strategy:

We should create a communication plan to help them feel valued.

In order to persuade customers to give Teltek another go, the company may also reward loyalty
points for product purchases. Additionally, we should research the goods they buy and
formulate a plan. Create a customized messaging plan for the same.
Q-4) Study each metric of cluster 2 and cluster 3. Which cluster is the best
among the two? What can you do to the other cluster to become the best
among the cluster 2 and 3?

Cluster:
Targeting strategy:

Teltek should leverage discounts on the services and volume growth to persuade customers in
Cluster 2 who do not currently have broadband or television services to do so. This cluster also
has the second-highest number of customers.
Cluster 3: The business should make an effort to keep them interested by suggesting new
products and enticing them to upgrade to premium status. Teltek should leverage discounts on
the services and volume growth to persuade customers in Cluster 2 who do not currently have
broadband or television services to do so. This cluster also has the second-highest number of
customers.
Q-5) How would you approach cluster 3 to make them more profitable?

Targeting strategy:

Since Cluster 3 consumers are the second-most profitable group, we should provide discounts
for them and send them unique communications to entice them to make larger purchases.
Additionally, we can attract them with promotions that would let them test out additional Teltek
services.
Q-6) Which metrics will you use in selecting the best classification model?

Metric:

The logistic regression model would be used. We only need to predict or classify the
categorical dependent variable based on one or more independent variables. In order to
forecast the categorical dependent variable, logistic regression is used. In other words, it
is employed when the prediction is categorical, such as when it is a binary choice such as
yes or no, true or false, or 0 or 1. There is no middle ground; the projected probability or
output of logistic regression can only be one of them.
Q-7) In order to predict the customer churn, the firm is required to solve a
binary classification problem. Apart from logistic regression that you have
already seen, there are other models as discussed in the video. Based on the
confusion matrix (given on the platform) for each of these models, choose the
best method for building the propensity to churn model?
Classification model:

I would use Logical Regression Method as it is a model that predicts the mathematical
relationship between a set of independent variables and a dependent binary variable. The
logistic regression model uses customers' characteristics to estimate the probability of a
customer churning out.
Q-8) From the churn analysis, which factors have a significant influence on
customer churn at a 95% confidence level?
Significant factors:

Senior citizens and gender factor have the greatest influence on churn analysis because
their P value is greater than 0.05 percent.
Q-9) Which channels have a significant influence on the total unit sales at 95%
confidence level?
Significant Channels:

Digital channels would have a significant impact on total unit sales because, according to
the regression analysis, they have much higher R Square and adjusted R Square scores
than non-digital channels.
Q-10) State the regression coefficients of the channels?

Regression Coefficients:

TV: 9.25587939343629
Radio: 3.41973070217645
Print: 67.188845759955
Search: 11.1837153913009
Facebook: 1.4056610312505
Q-11) State the multiple linear regression equation based on the results
obtained?
Regression equation:

Digital regression equation:

Sales = 1876 + 11.18xsearch + (-)1.4xFacebook

Non Digital regression equation:

Sale = 2985 +(-)9.25xTV + 3.41xRadio +_67.88xPrint