Churn Prediction- Commercial use of Data Science download Share
Introduction Churn prediction is probably one of the most important applications of data science in the commercial sector. The thing which makes it popular is that its effects are more tangible to comprehend and it plays a major factor in the overall profits earned by the business. Let’s get started! What exactly is Churn Prediction? Churn is defined in business terms as ‘when a client cancels a subscription to a service they have been using.’ A common example is people cancelling Spotify/Netflix subscriptions. So, Churn Prediction is essentially predicting which clients are most likely to cancel a subscription i.e ‘leave a company’ based on their usage of the service. From a company point of view, it is necessary to gain this information because acquiring new customers is often arduous and costlier than retaining old ones. Hence, the insights gained from Churn Prediction helps them to focus more on the customers that are at a high risk of leaving. The output in the case of Churn predi...