Question: Should we spend more time on the website or the app?

#Question:-Should-we-spend-more-time-on-the-website-or-the-app?

Other questions: If not spend more time working on the website or app, what are some other things we can look at to increase the yearly amount spent?

#Other-questions:-If-not-spend-more-time-working-on-the-website-or-app,-what-are-some-other-things-we-can-look-at-to-increase-the-yearly-amount-spent?

Read in the Data

#Read-in-the-Data
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Exploratory Data Analysis

#Exploratory-Data-Analysis
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Based on the visualization above, there is not much of a correlation between the time spent on a website and more money spent.

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Based on the visualization above, there is more of a correlation than time spent on the website; however, the data is not yet convincing to believe there is actually a correlation.

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Still not convincing enough. Now let's look at the relationships between the entire dataset.

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Based on the visualizations above, "Length of membership" and "Yearly Amount Spent" seem to be the most correlated.

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Train and Test the Data

#Train-and-Test-the-Data

Train the Model

#Train-the-Model
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Predicting the Test Data

#Predicting-the-Test-Data
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Evaluate the Model

#Evaluate-the-Model

It seems to be a good fit. Let's look at the residuals to ensure the model makes sense

Residuals

#Residuals
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Analyze the coefficients

#Analyze-the-coefficients
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If all of the other features remain fixed:

  • A 1 unit increase in
    Avg. Session Length
    is associated with an increase of 25.98 total dollars spent by the customer.
  • A 1 unit increase in
    Time on App
    is associated with an increase of 38.59 total dollars spent by the customer.
  • A 1 unit increase in
    Time on Website
    is associated with an increase of 0.19 total dollars spent by the customer.
  • A 1 unit increase in
    Length of Membership
    is associated with an increase of 61.27 total dollars spent by the customer.

Conclusion

#Conclusion

Based on the analysis, the company should:

#Based-on-the-analysis,-the-company-should:

(1) Spend more time developing the application since it yields a significant amount of money compared to the website.

AND

(2) Spend more time on increasing membership retention since it yields the greatest amount of money spent by the customer.