Customer churn analysis
The business goal
The business goal is a growing customer base and customer retention based on predictive analysis. We implemented a system that ranks customers making projections critical for business actions like upgrading from free to premium accounts, amounts of payments for premium accounts and how likely that person will stop using the service. The system is based on a database of user account information and user series of actions conducted using the service. After the new user data is loaded into the system, a ranking based on projected future activity is produced.
We used the following techniques as feature engineering for machine learning: random forest/decision trees models and “bag of words” like a model for user actions. This implementation was done by using Python and Scikit framework.
The project resulted in growing customer retention by 20% over the following quarter. We also discovered some trends regarding customer demographics and product preferences.