CUSTOMER CHURN PREDICTION USING
MACHINE LEARNING
CONTENTS
•Introduction
•Literature Review
•Data Collection
•Design Methodology
•Proposed System
•Results
•Conclusion
•References
INTRODUCTION
•Understanding Customer Churn and Its Impact
Churn refers to customers leaving a service, affecting revenue and growth. Identifying churn
reasons helps improve retention.
•Role of Machine Learning in Predictive Analytics
ML analyzes customer behavior patterns to predict churn, enabling proactive retention
strategies.
•Project Objective: Improve Retention Strategies
Develop an ML model to detect at-risk customers and enhance engagement strategies.
LITERATURE REVIEW
•Overview of Existing Churn Prediction Methods
Traditional methods use statistical analysis and customer surveys to predict churn, but
they often lack accuracy and real-time insights.
•Limitations of Traditional Approaches
Conventional techniques struggle with large datasets, fail to capture complex patterns,
and lack automation for continuous monitoring.
•Need for Advanced ML-Based Solutions
Machine Learning models can analyze vast customer data, detect hidden patterns, and
provide accurate, real-time churn predictions.
DATA COLLECTION
•Dataset Source and Description
The dataset is collected from customer interactions, including demographics, usage
patterns, and subscription details.
•Key Features Influencing Churn
Factors like customer tenure, service usage, payment history, and support interactions
impact churn predictions.
•Preprocessing Techniques Applied
Data cleaning, handling missing values, normalization, and feature selection were
performed to improve model accuracy.
DESIGN METHODOLOGY
•ML Models Used: Decision Trees, SVM, Neural Networks
Various machine learning models, including Decision Trees for interpretability, SVM for
classification, and Neural Networks for deep learning, were applied for churn prediction.
•Training and Validation Process
The dataset was split into training and testing sets, and cross-validation was used to fine-
tune the models for better accuracy.
•Feature Selection and Engineering
Important features were selected based on correlation analysis, and new derived features
were created to improve model performance.
PROPOSED SYSTEM
•Architecture of the Predictive Model
The model follows a structured pipeline, including data preprocessing, feature selection,
model training, and prediction.
•Workflow and Algorithm Implementation
The workflow involves data input, processing, applying ML algorithms, and generating
churn probability scores for each customer.
•Advantages Over Traditional Methods
ML models improve accuracy, handle large datasets efficiently, and provide real-time
insights compared to rule-based or statistical methods
RESULTS
•Model Performance Evaluation Metrics
The model was evaluated using key metrics such as accuracy, precision, recall, and F1-
score to measure effectiveness.
•Comparison with Existing Churn Prediction Models
Our model was compared against traditional statistical methods and other ML models,
showing improved predictive performance.
•Accuracy, Precision, Recall, and F1-Score
These metrics helped assess the model’s ability to correctly predict churn while
minimizing false positives and false negatives.
CONCLUSION
•Key Findings and Insights
The model successfully predicts customer churn with high accuracy, helping businesses
take proactive measures.
•Potential Applications in Business Analytics
Companies can use churn predictions to improve customer retention, optimize marketing
strategies, and enhance customer experience.
•Future Scope: Enhancing Prediction Accuracy
Future improvements include integrating deep learning, real-time data processing, and
advanced feature engineering for better results.
REFERENCES
• • RESEARCH PAPERS AND SOURCES CITED
• • DATASETS AND TOOLS USED
• • FURTHER READING SUGGESTIONS
THANK YOU
