This document contains the responses to 11 questions regarding a customer analysis project for TelTek. For questions 1 and 2, it provides the RFM scores for two customers and matches RFM score clusters to targeting strategies. For questions 3 through 7, it proposes targeting strategies and classification models for different customer clusters. Questions 8 through 10 analyze factors influencing churn and sales. Question 11 states the multiple linear regression equations for digital and non-digital channels based on their coefficients.

1. TelTek Project Submission
Name - Anjali Bisoi
Student ID -

2. Q-1) What is the RFM score of customer 26 and customer 150.
For Customer 26:
Recency (R) score: 16/02/2017
Frequency (F) score : 3
Monetary value (M) score: 595
For Customer 150:
Recency (R) score: 05/08/2017
Frequency (F) score : 4
Monetary value (M) score: 375

3. Q-2) Match the targeting strategies with the RFM scores given in the
table. RFM scores Targeting strategy
A. Customers with all the recency, frequency and monetary value
scores of 3 and 4 such as 4-4-4,4-4-3,3-4-3
i. TelTek should send them notifications about new TV shows
being screened on its OTT service partner’s platform. In this way,
the firm can make the customers consume more data, eventually
pushing them to recharge more frequently.
B. Churned best customers with low recency scores and high
frequency and monetary scores such as 1-4-4, 1-3-4, 1-3-3
ii. TelTek should ensure that these type of customers have a great
experience. Any Conflict or complaint should be resolved
promptly.
C. Customers with low-frequency scores and high recency and
monetary value scores such as 4-1-4, 3-1-4, 3-1-3
iii. The firm should use upselling strategy to make these
customers upgrade their existing subscription or subscribe for
additional services.
D. Customers with low monetary value score and high recency
and frequency scores such as 4-4-1, 3-4-1,3-3-1
iv. The company should develop a strategy to reacquire and re-
engage these type of customers by offering them incentives and
great customer experience
A - 2 , B - 4 , C - 1 , D - 3

4. Q-3) Which cluster comprises of the most valuable customers? What
targeting strategy should the company use for these type of customers?.
Cluster: Because these customers are thought to generate more revenue.
Targeting strategy:
We should develop a communication strategy to make them feel appreciated.
• The company can also award loyalty points for product purchases.• The company can offer cash back to
entice customers to try teltek again.
• We should also examine the products they purchase and develop a strategy. For the same, develop a
personalized messaging strategy.

5. Q-4) Study each metric of cluster 2 and cluster 3. Which cluster is the
best among the two? What can you do to the other cluster to become the
best among the cluster 2 and 3?
Cluster:
Targeting strategy:
For Cluster 1, because the customers do not have broadband or television services, Teltek should entice
them to purchase these products by offering discounts on the services and driving volume growth; this
cluster also has the second highest number of customers.
Cluster 4: The company should try to engage them by recommending new products and encouraging them
to become premium customers.

6. Q-5) How would you approach cluster 3 to make them more profitable?
Targeting strategy:
Cluster 3 is the second most profitable set of customers, so we should give them discounts and offer
personalized messages to encourage them to buy more. We can also entice them with offers that will allow
them to try out more Teltek services.

7. Q-6) Which metrics will you use in selecting the best classification model?
Metric:
The logistic regression model would be used. We only need to predict or classify the categorical
dependent variable based on one or more independent variables.

8. Q-7) In order to predict the customer churn, the firm is required to solve a
binary classification problem. Apart from logistic regression that you have
already seen, there are other models as discussed in the video. Based on
the confusion matrix (given on the platform) for each of these models,
choose the best method for building the propensity to churn model?
Classification model:
NA

9. Q-8) From the churn analysis, which factors have a significant influence
on customer churn at a 95% confidence level?
Significant factors:
Senior citizens and gender factor have the greatest influence on churn analysis because their P
value is greater than 0.05 percent.

10. Q-9) Which channels have a significant influence on the total unit sales at
95% confidence level?
Significant Channels:
Digital channels would have a significant impact on total unit sales because, according to the
regression analysis, they have much higher R Square and adjusted R Square scores than non-digital
channels.

11. Q-10) State the regression coefficients of the channels?
Regression Coefficients:
TV: 9.25587939343629
Radio: 3.41973070217645
Print: 67.188845759955
Search: 11.1837153913009
Facebook:1.4056610312505

12. Q-11) State the multiple linear regression equation based on the results
obtained?
Regression equation:
Digital regression equation:
Sales = 1876 + 11.18xsearch + (-)1.4xFacebook
Non Digital regression equation:
Sale = 2985 +(-)9.25xTV + 3.41xRadio +_67.88xPrint