Customer Churn Prediction Analysis
1. Introduction
Customer churn refers to customers leaving a service. Predicting churn helps businesses
retain customers by identifying why they leave and taking proactive actions.
2. Objective
Analyze customer data to find churn patterns.
Build a machine learning model to predict churn.
Provide insights for customer retention strategies.
3. Scope
Applicable to industries like telecom, banking, e-commerce, and subscription services
(Netflix, Spotify, etc.).
4. Methodology
Data Collection – Customer demographics, usage, payments, and churn status.
Data Processing – Handle missing values and perform EDA.
Model Training – Use Logistic Regression, Decision Trees, and XGBoost.
Evaluation – Check accuracy using Precision, Recall, and AUC Score.
Insights & Recommendations – Identify high-risk customers and suggest retention
strategies.
5. Expected Outcome
A model that accurately predicts churn.
Key insights into why customers leave.
Business strategies to reduce churn and improve customer loyalty.