Predicting Customer Churn Using Machine Learning
Introduction
Customer churn is a critical challenge for businesses in competitive markets. Predicting
which customers are likely to leave can help businesses retain valuable clients by targeting
them with personalized offers. This report explores how machine learning models can
predict customer churn in a telecommunications company.
Methodology
● Data Collection: Customer data from a telecom company, including usage patterns,
customer service interactions, and account details.
● Analytical Technique: Logistic regression and Random Forest to classify customers
as likely to churn or remain based on historical behavior.
● Validation: Accuracy, precision, recall, and F1-score used to assess model
performance.
Key Results
Random Forest was the most accurate, identifying at-risk customers with 85% accuracy,
which was significantly better than traditional rule-based models.