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CASE STUDY: CUSTOMER ATTRITION

MnZ Telecom is a large internet service provider in USA. MnZ has had reasonably stable attrition rate before 2010, but last 2 years exhibited a considerable increase in attrition. You are a part of the consulting team that has been asked to present to the Chief Operating Officer of MnZ Telecom about how you could use data over last two years to understand their customers, identify which customers are at risk and use this to drive actions that mitigates attrition Key questions which Chief Operating Officer has asked you to investigate are: 1. What are the factors which are related to a high risk of attrition? [30 points] a. What is the relation between length of residence and attrition
Hint: Here you are expected to drill down the data available to you and look at how different factors affect attrition. You might find it useful to compute overall attrition rate, first as a benchmark. Specifically for ‘length of residence’, the COO has asked for attrition trend for customers who have lived at their residence for less than or equal to six months, between 6 to 12 months & more than 12 months

2. Which high attrition factors are also related to high revenue loss? [30 points]
Hint: Starting with results of question #1, try to also look at the average annual usage (in MB) and table #1 below. The COO is interested in focusing on those customers which can cause high revenue loss. Note that the actual usage is

3. What can I do to mitigate the attrition?

[30 points]

Hint: You are expected to come up with a plan of action for the next 1 year for the firm and which activities/customer segments it should focus on and which not. This will be descriptive, and should flow from question #1 & #2. It should be backed by data

Assume that you have the following additional information for the above question.The below table provides the revenue the company earns through its data plans Table 1: Revenue by Service Plan
Service Plan Home Pro Elite Revenue Earned per MB used $ 0.5 $ 0.7 $ 0.9

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All relevant analysis done in excel must be attached with the PowerPoint presentation Page 2 .) neatness of presentation. 10 points are for the quality of deliverables (i. The questions will have a total weightage of 90 points.Evaluation Your recommendations/insights regarding the above 3 questions should be backed up by relevant data analysis in excel.e. We will give weightage to your creative thought process & to the assumptions that you make Presentation format Your response to the case study must be written in PowerPoint format and no more than 5 slides.