Analysis of Lifetime Value Using SQL and Python: Part 3

In this segment, Favio will perform the analysis of the internet and other services, and, later, he will perform an analysis of the contract.

In the forthcoming video, Favio will perform the analysis of the internet services. Let us go ahead and watch the video.

So, after performing the analysis above, we were able to draw these conclusions:

• In the high-LTV group, all the customers used the internet service and 90% of them used a fiber optic connection.
• On the other hand, among the low-LTV (80%) customers, 7% did not use the internet service and only 64% of them used a fiber optic connection. 

This suggests that having internet services, and specifically a fiber optic connection, can bring you closer to the high-LTV group.

As you may have seen in the data, we had a lot of other services that could impact our customers’ LTVs. So, in the next video, Favio will perform a similar analysis on all the remaining services and draw some conclusions from it. Let us go ahead and watch the video.

So, in the video, we were able to draw these conclusions:

• About 80% of the customers in the top 20% use both streaming movies and streaming TV.
• For the bottom 80%, this value is only about 40%.
• This suggests that streaming TV and streaming movies are factors that could influence the LTVs of the customers.

Apart from this, we can also see a significant difference in the usage of device protection and online backup, which are being used by about 55% of the customers in the high-LTV group as opposed to only 22% in the low-LTV group.

This brings us to the end of the analysis of the influence of the different services on the LTVs. We will be revising the services again when we move to Tableau, where we will be looking at both.

Finally, we will be performing an analysis of the contract and its impact on the customers’ LTVs. Apart from LTV, we will also look at the impact of the contract on churn and assess whether this could be a possible reason for customers leaving the company.

A close look at the data will tell you that there are three types of contracts: month to month, 1-year contract, and 2-year contract. In the forthcoming video, we will see how the different types of contracts influence the LTV and churn. Let us go ahead and watch the video.

So, from this analysis, we found that people are less likely to churn if they have a 2-year or a 1-year contract as compared with a month-to-month contract.