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Data Analysis Using SQL and Excel - Second Edition
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Survival analysis can be used to compare different groups of customers by creating a separate curve for each group. This process, called stratification, qualitatively shows the effect of market, or rate plan, or channel, or a combination of them, on survival.
This section shows how to quantify the effects at different tenures. For numeric variables, the comparison uses averages of the variable at different tenures for customers who stop and do not stop. For categorical variables, the comparison uses hazards ratios at different tenures. The key idea is that the effect of such variables may be stronger during some parts of the customer tenure and weaker during others. Being able to see the effects at different tenures sheds light on the effect of the variables on customer relationships.
Figure 7-1What differentiates the customer(s) who stop from the customer(s) who remain active?
Figure 7.1: At any given tenure, what differentiates...
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