ACCA Strategic Professional · Advanced Performance Management · Data science and analytics
Delta Telecom notices that customer churn rose from 8% to 12% in the last quarter. An analyst drills down by tariff, region and customer service call history and finds that churn is concentrated among customers who experienced two or more unresolved billing complaints. Which type of analytics is the analyst mainly performing?
The analyst is performing diagnostic analytics. The work drills into past data by tariff, region and complaint history to explain why churn rose, finding a link to unresolved billing complaints. It does not forecast future churn or recommend a specific action, so it is not predictive or prescriptive.
- ADescriptive analytics, because churn rates are being reported
- BDiagnostic analytics, because the aim is to identify why churn increasedCorrect
- CPredictive analytics, because future churn is being estimated
- DPrescriptive analytics, because a retention policy is being selected
Explanation
The analyst uses drill-down and correlation to find the cause of a past change in churn. This is diagnostic analytics. Reporting the churn figure alone would be descriptive, but the investigation of the reason moves it beyond that. No forecast or recommended action is produced.
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