QUBS6600

Problem Description

Use the data provided by Next Gen and Experian to develop a regression model for predicting the future financial value of a member based on their characteristics and activity in the last 2 years (such as attendance records, classes booked, MOSAIC attributes, etc.) For the purposes of this project, future financial value of a member is defined as the total revenue (excluding membership fees) generated by them over the next 24 months.

The project presents a unique opportunity to apply your data analytics skills to a realworld business challenge and contribute to the ongoing success of Next Gen. Your work will provide valuable insights and drive impactful results for the business. For the duration of this project, think of yourselves as members of Next Gen's Analytics team.

In this project, you should:

Conduct Exploratory Data Analysis (EDA) to identify the top behaviours and attributes that are likely to predict the future financial value a Next Gen member.

You should aim to find or reveal all relevant properties, characteristics, patterns, and statistics hidden in the datasets.

Develop a regression model for predicting the (next 24month) future financial value of the members based on their characteristics and activity in the last 2 years.

You can implement any statistical or machine learning approaches that you feel are appropriate. Ensure that you justify the selection of your model and interpret the model in terms of the key attributes for predicting the future financial value. Use RMSE or RMSLE to evaluate the performance of your final model.

Based on your analysis, outline a strategy to help Next Gen prioritise members, enabling better targeting and personalisation of marketing efforts and services.

You should design a specific potential project for the Next Gen team to execute, to take advantage of the key behaviours and attributes that you have identified, and the models that you have built and validated. The project could include marketing programs, product enhancements and/or other interventions or changes. The project should be backed by highlevel revenue and cost estimates, accompanied by assumptions and/or supporting data.

Data Description

Next Gen and Experian are providing several datasets in CSV format that contain membership information, attendance history, facility usage, class bookings, ancillary spending, household relationships, and demographic segmentation. Next Gen has made efforts to ensure the data is relatively clean; however, we encourage you to perform further checks and conduct the necessary data processing and feature engineering. Supporting files, including the data dictionary, are also provided.