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A BASIC APPROACH
How Machine Learning Can Help with Customer Retention
Building a churn model to understand why customers are leaving
“… Your payment could not be completed … “ — The email stated
I got frustrated
“Again!!!!…” — I yelled
It was the third month in a row this happened with my subscription.
I tried calling to customer service and sending a message, but I got no answer or solution.
I thought about quitting my subscription. If only I didn’t like the product so much.
I started to look for other companies that provided the same services but had better customer services.
Customer Churn, also known as customer attrition, or customer turnover, is the loss of customers. It is an important and challenging problem for e-commerce and online businesses.
For any business in a designated period of time, customers can fall into 3 main categories: Newly Acquired Customers, existing Customers, and churned customers.
Churned Customers are those who have decided to end their relationship with a company.
Because they can translate in a direct loss of revenue, predicting possible…