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01
 VARIABLES CHOSEN AND THEIR RATIONALE
1. Program.Code- This is a very granular
code that describes where the trip went
and what it did. HN, for instance, is a
history program that runs in New York.
This has been selected because it
represents the program that has been
offered and thus is an important
parameter.
5. Tuition - This is the price it costs each
full-paying participant (FPP) to go on the
program. This is important to understand
whether the expense of the trips and how
it plays an important role in the customer
retention.
2. Is.Non.Annual - 1/0 indicating if the
group from this school typically skips a
3. Days – This is an important parameter 4. Travel.Type – This is to understand
year in between programs. These will
to understand the number of days the mode of travel from the originating school
rarely repeat the very next year. This is
group was on the program and with one of location to the starting location of the
important to understand whether the
the instructors. program (A = Air, B = Bus, T = Train).
school is skipping a year between the
programs or not
6. School Type- This is to understand the 7. Total School Enrolment: This is the total 8. Income.Level: To differentiate the ability
type of school- whether private or public. enrolment of the school (to differentiate of parents to pay for these programs. A is
  big schools from little ones). lowest, Q is highest, Z is unclassified.
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 VARIABLES CHOSEN AND THEIR RATIONALE
9. School sponsor: This is an indication (1/0)
of whether or not the school is officially
sponsoring the trip. An important parameter
for the Customer retention.
13. MajorProgramCode: Aggregation of the
granular program code; the first letter of the
program code, will be required for
determining the Customer Retention
parameter.
10. SPR.Product.Type: A high level of
aggregation of the very granular tour types
which will be essential in determining the
customer retention parameter.
14. FPP.to.School.enrollment : The ratio of
FPP to school enrolment, which would be
required to determine the rate of school
enrolment and thus affecting the customer
retention parameter.
11. SPR.New.Existing: EXISTING means that
12. FPP: This is the actual number of FPPs
the group has travelled with STC before—
who went on the trip. This is an important
most often the year before. NEW, with few parameter to determine the customer
exceptions, means that the school has never retention parameter
travelled before with STC.
15. SchoolSizeIndicator: Size of the school to
measure its correlation with the propensity
RetainedIn2012:
of the client to stay. Dependant variable.
03
04
82.04
85.68

06
07
81.78
84.18

08
81.08
84.32

09
Company B & NPS Scores

Accuracy 63

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Focus on target customer groups

Based on analysis of past data, the above are the three most important factors that will determine whether a customer
would book again 11
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THANK YOU.