Customer Attrition Analysis for a Telecommunications Company

Task:

One of the most critical factors in customer relationship management that directly impacts a company’s longterm profitability is customer attrition. When a company can better predict if a customer is likely to cut ties, it can take a more targeted approach to mitigate customer turnover. In this task, you will use Python, SAS, or R to analyze data for a telecommunications company (see “Customer Data” web link) and create a data mining report in a word processor (e.g., Microsoft Word). You will create visual representations throughout the submission to show each step of your work and to visually represent the findings of your data analysis. All algorithms and visual representations used need to be captured (either in tables within the word document or with screen shots added into the word document) and should be submitted as part of your document for final submission

You are an analyst for a telecommunications company that is concerned about the number of customers leaving their landline business for cable competitors. The company needs to know which customers are leaving and attempt to mitigate continued customer loss. You have been asked to analyze customer data to identify why customers are leaving and potential indicators to explain why those customers are leaving so the company can make an informed plan to mitigate further loss.

I: Tool Selection

Execute data extraction from the “Customer Data” web link using data mining software (Python, R, or SAS). Provide a screen shot of the code you have written and its successful application with a copy of all the extracted data.

A. Describe the benefits of using the tool you have chosen (Python, R, or SAS) for extracting data in this scenario.

B. Define the objectives or goals of the data analysis. Ensure that your objectives or goals are reasonable within the scope of the scenario and are represented in the available data.

C. Select a descriptive method and a nondescriptive method (i.e., predictive, classification, or probabilistic techniques) you will use to analyze the data, and explain how the methods you have selected are appropriate for the objectives or goals you have defined.

II: Data Exploration and Preparation

Clean the data you have extracted and save as .xls or .xlsx format for submission. Be sure to address all necessary formatting, converting, and missing data.

D. Describe the target variable in the data and indicate the specific type of data the target variable is using, including examples that support your claims.
E. Describe an independent predictor variable in the data and indicate the specific type of data being described. Use examples from the data set that support your claims.
F. Propose the goal in manipulation of the data and define your data preparation aims.
G. Define the statistical identity of the data, including the essential criteria and phenomenon to bepredicted.
H. Explain the steps used to clean the data and how you addressed any anomalies or missing data.

III: Data Analysis

For each of the following steps, be sure to clearly indicate each step within your data sheet with a screen shot and annotations in your final submission. All algorithms used need to be clearly identified in the screen shot.