Predicting Customer Churn

A Modeling Exercise

We’d like to predict, for a given product, whether a user will churn — i.e., stop using it— in the ‘near future’. We can do a number of things with such a prediction:

• Estimate near-future revenue. This is especially useful when there is likely recurring revenue from continued use, such as in a subscription service, or from in-app purchases.
• Proactively take some “remedial action” for users likely to churn.