Burn that Churn? Checking Retention of Customers in Predictive Analysis

[TammyPowlas]

Do you want to see which types of customers are staying or leaving you?

The SAP Help says the R CNR Tree algorithm "Classifying and predicting one or more discrete variables based on other variables in the dataset".  The help also states:

"Use this algorithm to classify observations into groups and predict one or more discrete variables based on other variables. However, you can also use this  algorithm to find trends in data."

First, I have a set of data of customers by age, wealth, and savings.  I read that into SAP Predictive, and then select the R-CNR tree algorithm.

I'll set the churn flag as the dependent column, the deposits, investments and independent, and use the classification method.

The above shows I have run the analysis.

On the far right of the above, I can see the Predicted Values

The above shows the standard charts and trends

I run the algorithm again

Looking at the data via Visual Intelligence, you can see which customers are you retaining and which ones are leaving.

You can see that younger people are more apt to "churn" whereas individuals in older groups are more likely retained.