A cell phone service provider uses Modeler’s data mining ability to discover which customers are most likely to switch to another provider. The analysis identifies that males age 30-40 with a particular model handset are 50 percent likely to churn. This is a totally new insight that contradicts the company’s previous “conventional wisdom.”
To ensure that a model from SPSS Modeler has truly identified something new, company analysts often run a number of statistical analyses using SPSS. They measure the statistical significance of the discovered pattern and perform a “survival analysis” to help understand the length of customer relationships (before they churn).
These procedures give the company additional confidence that they are committing their resources wisely to address this churn profile identified by SPSS Modeler. Finally, the company uses SPSS to create charts and graphs that are placed in a Word document report summary that provides recommendations to decision makers.