Reference no: EM131636057

Question: CHURN IN THE CELLULAR PHONE MARKET

The term "churn" is very important to managers in the cellular phone business. Churning occurs when a customer stops using one company's service and switches to another company's service. Obviously, managers try to keep churning to a minimum, not only by offering the best possible service, but by trying to identify conditions that lead to churning and taking steps to stop churning before it occurs. For example, if a company learns that customers tend to churn at the end of their two-year contract, they could offer customers an incentive to stay a month or two before the end of their two-year contract. The file Churn.xlsx contains data on over 2000 customers of a particular cellular phone company. Each row contains the activity of a particular customer for a given time period, and the last column indicates whether the customer churned during this time period. Use the tools in this chapter (and possibly the previous chapter) to learn

(1) how these variables are distributed,

(2) how the variables in columns B-R are related to each other, and (3) how the variables in columns B-R are related to the Churn variable in column S. Write a short report of your findings, including any recommendations you would make to the company to reduce churn.