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Customer Churn Prediction in Telecom

The document proposes a customer churn prediction problem using a hypothetical telecom dataset. It describes predicting whether a customer will churn using features like demographics, usage patterns, and customer service interactions. It then provides an implementation using scikit-learn to build a random forest classifier on training and test splits of the data. Model performance is evaluated using accuracy and a classification report to analyze prediction effectiveness on different classes like churn and non-churn.

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Balaji Dhanabal
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172 views4 pages

Customer Churn Prediction in Telecom

The document proposes a customer churn prediction problem using a hypothetical telecom dataset. It describes predicting whether a customer will churn using features like demographics, usage patterns, and customer service interactions. It then provides an implementation using scikit-learn to build a random forest classifier on training and test splits of the data. Model performance is evaluated using accuracy and a classification report to analyze prediction effectiveness on different classes like churn and non-churn.

Uploaded by

Balaji Dhanabal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Sure, let's create a prediction problem related to customer churn prediction

for a telecommunications company. Customer churn refers to the


phenomenon where customers discontinue their services with a company.
It's a critical issue for businesses, especially in industries with subscription-
based services like telecommunications.

Prediction Problem: Predict whether a customer will churn or not based


on various features such as demographics, usage patterns, and customer
service interactions.

Dataset: We'll use a hypothetical dataset containing information about


customers including their demographics (age, gender, location), service
usage (duration of service, monthly charges, types of services subscribed
to), and interactions with customer service (number of calls, complaints,
resolutions).

Implementation:
# Importing necessary libraries

import pandas as pd

from sklearn.model_selection import train_test_split

from [Link] import RandomForestClassifier

from [Link] import accuracy_score, classification_report

# Loading the dataset (hypothetical)

data = pd.read_csv("telecom_churn_dataset.csv")

# Preprocessing: Removing irrelevant columns, handling missing values,


encoding categorical variables, etc.

# Splitting the data into features (X) and target variable (y)

X = [Link](columns=['Churn'])
y = data['Churn']

# Splitting the data into training and testing sets

X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.2,


random_state=42)

# Initializing the Random Forest classifier

rf_classifier = RandomForestClassifier()

# Training the classifier

rf_classifier.fit(X_train, y_train)

# Making predictions on the test set

predictions = rf_classifier.predict(X_test)

# Evaluating the model

accuracy = accuracy_score(y_test, predictions)

report = classification_report(y_test, predictions)

print("Accuracy:", accuracy)

print("Classification Report:")

print(report)

Analysis:

 Accuracy: The accuracy score tells us how well our model is performing
overall. A high accuracy indicates that the model is making correct
predictions most of the time. However, it's essential to check other metrics
as well.
 Classification Report: This report provides a detailed breakdown of various
metrics such as precision, recall, and F1-score for each class (churn and
non-churn). It gives us insights into how well the model is performing for
different classes. For example, we might want to ensure that the model has
high recall for predicting churn to identify potential churners accurately.

After analyzing the results, we might further tune the model parameters, try
different algorithms, or conduct feature engineering to improve the
performance further. Additionally, examining feature importances can
provide insights into which factors are most influential in predicting churn.

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