Book Image

The Art of Data-Driven Business

By : Alan Bernardo Palacio
Book Image

The Art of Data-Driven Business

By: Alan Bernardo Palacio

Overview of this book

One of the most valuable contributions of data science is toward helping businesses make the right decisions. Understanding this complicated confluence of two disparate worlds, as well as a fiercely competitive market, calls for all the guidance you can get. The Art of Data-Driven Business is your invaluable guide to gaining a business-driven perspective, as well as leveraging the power of machine learning (ML) to guide decision-making in your business. This book provides a common ground of discussion for several profiles within a company. You’ll begin by looking at how to use Python and its many libraries for machine learning. Experienced data scientists may want to skip this short introduction, but you’ll soon get to the meat of the book and explore the many and varied ways ML with Python can be applied to the domain of business decisions through real-world business problems that you can tackle by yourself. As you advance, you’ll gain practical insights into the value that ML can provide to your business, as well as the technical ability to apply a wide variety of tried-and-tested ML methods. By the end of this Python book, you’ll have learned the value of basing your business decisions on data-driven methodologies and have developed the Python skills needed to apply what you’ve learned in the real world.
Table of Contents (17 chapters)
Part 1: Data Analytics and Forecasting with Python
Part 2: Market and Customer Insights
Part 3: Operation and Pricing Optimization

Understanding customer churn

In business, the number of paying customers that fail to become repeat customers for a given product or service is known as customer churn, also known as customer attrition. Churn in this sense refers to a measurable rate of change that happens over a predetermined period of time.

Analyzing the causes of churn, engaging with customers, educating them, knowing who is at risk, identifying your most valuable customers, offering incentives, selecting the correct audience to target, and providing better service are a few strategies to reduce customer turnover.

It’s crucial to lower churn because it increases Customer Acquisition Cost (CAC) and lowers revenue. In actuality, maintaining and improving current client relationships is much less expensive than gaining new consumers. The more clients you lose, the more money you’ll need to spend on acquiring new ones in order to make up for the lost revenue. You can use the following formula to...