Predict behaviour to retain customers and develop focused customer retention programs.
Churn is a one of the biggest problem in the telecom industry. Research has shown that the average monthly churn rate among the top 4 wireless carriers in the US is 1.9% - 2%.- Logistic Regression, Decision Tree and Random Forest used for customer churn analysis give equal results.
- Features such as tenure_group, Contract, PaperlessBilling, MonthlyCharges and InternetService appear to play a role in customer churn.
- There does not seem to be a relationship between gender and churn. However, churn % is high for senior citizens when compared to the younger age groups.
- Customers in a month-to-month contract, with PaperlessBilling and are within 12 months tenure, are more likely to churn; On the other hand, customers with one or two year contract, with longer than 12 months tenure, that are not using PaperlessBilling, are less likely to churn.