CASE STUDY: JMP030
Customer Churn
From Building Better Models With JMP® Pro, Chapter 7, SAS Press (2015). Grayson, Gardner and Stephens.
Used with permission. For additional information see
https://www.jmp.com/en_us/academic/building-better-models.html
Key Concepts: Neural networks, activation functions, model validation, confusion matrix, lift, prediction profiler, variable importance
Dr. Jim Grayson
Augusta University
Sam Gardner
Eli Lilly
Mia Stephens
JMP
Objective
Analyze the factors related to customer churn of a mobile phone service provider. The company would like to build a model to predict which customers are most likely to move their service to a competitor. This knowledge will be used to identify customers for targeted interventions, with the ultimate goal of reducing churn.
Background
Customer retention is a challenge in the ultracompetitive mobile phone industry. A mobile phone company is studying factors related to customer churn, a term used for customers who have moved to another service provider.
The Task
The company would like to build a model to predict which customers are most likely to move their service to a competitor. This knowledge will be used to identify customers for targeted interventions, with the ultimate goal of reducing churn.