ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Karlov Telecom finds that customer churn rose sharply in March. Analysts drill down through customer segments, compare tariff changes and correlate churn with call-centre complaint volumes to establish the cause. Which type of analytics is mainly being used?
This is diagnostic analytics. The team is using drill-down and correlation to find the reasons behind the March rise in churn. It goes beyond merely reporting the rise (descriptive) but does not yet forecast future churn or recommend actions.
- ADescriptive analytics
- BDiagnostic analyticsCorrect
- CPredictive analytics
- DPrescriptive analytics
Explanation
Drilling down and correlating variables to find why churn rose is diagnostic analytics. Descriptive analytics would only state that churn rose. Predictive analytics would estimate future churn, and prescriptive analytics would recommend what to do about it.
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