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The Art of Data-Driven Business

You're reading from   The Art of Data-Driven Business Transform your organization into a data-driven one with the power of Python machine learning

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Product type Paperback
Published in Dec 2022
Publisher Packt
ISBN-13 9781804611036
Length 314 pages
Edition 1st Edition
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Author (1):
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Alan Bernardo Palacio Alan Bernardo Palacio
Author Profile Icon Alan Bernardo Palacio
Alan Bernardo Palacio
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Table of Contents (17) Chapters Close

Preface 1. Part 1: Data Analytics and Forecasting with Python
2. Chapter 1: Analyzing and Visualizing Data with Python FREE CHAPTER 3. Chapter 2: Using Machine Learning in Business Operations 4. Part 2: Market and Customer Insights
5. Chapter 3: Finding Business Opportunities with Market Insights 6. Chapter 4: Understanding Customer Preferences with Conjoint Analysis 7. Chapter 5: Selecting the Optimal Price with Price Demand Elasticity 8. Chapter 6: Product Recommendation 9. Part 3: Operation and Pricing Optimization
10. Chapter 7: Predicting Customer Churn 11. Chapter 8: Grouping Users with Customer Segmentation 12. Chapter 9: Using Historical Markdown Data to Predict Sales 13. Chapter 10: Web Analytics Optimization 14. Chapter 11: Creating a Data-Driven Culture in Business 15. Index 16. Other Books You May Enjoy

Exploring variable relationships

Exploring the way in which variables move together can help us to determine the hidden patterns that govern the behaviors of our clients:

  1. Our first step here will be using the Seaborn method to plot some of the relationships, mostly between numerical continuous variables such as tenure, monthly charges, and total charges, using the churn as the hue parameter:
    g = sns.pairplot(data[['tenure','MonthlyCharges', 'TotalCharges','Churn']], hue= "Churn",palette= (["red","blue"]),height=6)

Figure 7.10: Continuous variable relationships

We can observe from the distributions that the customers who churn tend to have a low tenure number, generally having low amounts of monthly charges, as well as having much lower total charges on average.

  1. Now, we can finally transform and determine the object columns that we will convert into dummies:
    object_cols ...
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