karthikavarmar / advanced-data-analytics

This is a consulting case problem that leverages data analytics to derive a solution.

advanced-data-analytics

This is a consulting case problem that leverages data analytics to derive a solution.

PowerCo. is a major gas and electricity utility that supplies to corporate, SME and residential customers. Europe is facing a significant churn problem due to the power-liberalization of the energy market. Problem is largest in the SME segment.We need to develop a predictive model to predict customer churn.

Hypothesis -

that the churn is driven by the customer price sensitivity. Some possibilities: 1.Churn-probable customers by 70% or above chances could be given a discount. 2. All the discounted consumers would need to agree and accept it. Giving them 20% discount doesn’t seem to be a completely good solution as they can incur losses.

There are other variables that comes into account like:

1. The electricity consumption during the 1st period.
2. The price of the power for the coming months.
3. Predicted meter reading bill for the next period.

Best Options to follow:

1. Analyse the trend by Marketing statistics.
2. Offer discounts for the churn-probable customers.
3. Build trust and loyalty with the customers.
4. Leave out the non-profitable and churnable customers.