1. You’re interviewing for a Data Scientist internship on a marketing analytics team.
The full question
You’re interviewing for a Data Scientist internship on a marketing analytics team.
Tell a story about a project where you built (a) a statistical model (e.g., linear/logistic regression, GLM) and (b) a machine learning model (e.g., tree-based model, boosting, neural net).
In your answer, cover: 1) The business problem and decision the model supported. 2) The target/label definition and what “success” meant. 3) What features you used (behavioral, demographic/firmographic, marketing touchpoints, time-based features, text, etc.) and why. 4) How you handled stakeholder needs: did they only care about predictive performance, or also interpretability (which features mattered and why)? 5) What you would do differently next time (data issues, leakage, monitoring, deployment, fairness, etc.).
Model answer
Situation
During my final year at university, I led a project as part of a marketing analytics course where we aimed to improve customer retention for a subscription-based streaming service. The stakes were high because the company was experiencing a churn rate of over 20%, which significantly impacted revenue. As the project lead, my role was to develop both a statistical and a machine learning model to predict churn and provide actionable insights.
Task
My specific goal was to build models that could accurately predict which customers were likely to churn and identify the key factors influencing their decisions. The challenge was balancing predictive accuracy with interpretability to ensure stakeholders could trust and act on the insights.
Action
- I began by defining the target variable as whether a customer would churn within the next month, with "success" meaning a reduction in churn rate by at least 5%.
- For the statistical model, I chose logistic regression due to its interpretability, focusing on features like customer demographics, subscription history, and engagement metrics. This helped stakeholders understand the impact of each feature on churn probability.
- For the machine learning model, I used a random forest classifier, which allowed for capturing complex interactions between features. I included behavioral data, such as viewing habits and frequency of service use, to enhance predictive power.
- I conducted feature engineering to create time-based features, like the number of days since the last login, and marketing touchpoints, such as email engagement scores.
- To address stakeholder needs, I presented both models' results, highlighting the trade-off between the interpretability of logistic regression and the higher accuracy of the random forest model. I provided a feature importance chart from the random forest to help stakeholders understand which factors were most influential.
- I facilitated a workshop with the marketing team to discuss how these insights could inform targeted retention campaigns, ensuring alignment with business goals.
Result
The logistic regression model achieved an accuracy of 75%, while the random forest model reached 85%. The insights led to a targeted campaign that reduced churn by 6% in the following quarter, exceeding our initial goal. Reflecting on the project, I learned the importance of balancing model complexity with stakeholder needs. Next time, I would focus more on data monitoring and fairness to ensure long-term model reliability and ethical considerations.