In this analysis, I want to know if the optional services that customers subscribe have impact on churn. Especially, my hypothesis is that if a customer subscribes to the faster Internet service (i.e. Fiber Optic), the customer likes the speed and tends to stay with the company.
So let’s quickly run Random Forest to see if it worths looking into details.
As you can see in above chart, Internet Service is in “confirmed (green color)” state and is positioned at 5th place. It sounds like it does have impact on churn.
Let’s check it with Chi-square test. The result shows Fiber optic does have impact but in the other direction. My hypothesis is that if a customer uses Fiber optic Internet service, the customer stays with the company. But it looks it’s actually contributes to churn.
The reason why Fiber Optic service increases churn could be the service is too expensive or the service is crappy and requires lot of customer supports.
So let’s quickly check correlation among other variables to see if these are the cases.
First, let’s do One Hot Encoding for InternetService column and TechSupport column so that we can check correlation with other columns for each option. Then do Correlation by Columns as follows.
So if you look into InternetService_Fiber Optic, it has positive correlation with MonthlyCharge but not for TechSupport_Yes. So this could be due to higher pricing for the Fiber Optic.
Unlike what I expected, the Fiber Optic options seems to increase customer churn and this could be due to price for the option. As a next analysis, we might want to compare the price with that of competitors who provide similar service.