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Sample Report 2

This study focuses on developing a predictive model for customer churn in the telecommunications industry to help businesses retain customers and minimize revenue loss. It utilizes machine learning techniques, specifically a Random Forest Classifier, achieving an accuracy of 87% in predicting churn. Future enhancements may include sentiment analysis and advanced learning techniques for personalized retention strategies.

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Hemant Chaudhari
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19 views4 pages

Sample Report 2

This study focuses on developing a predictive model for customer churn in the telecommunications industry to help businesses retain customers and minimize revenue loss. It utilizes machine learning techniques, specifically a Random Forest Classifier, achieving an accuracy of 87% in predicting churn. Future enhancements may include sentiment analysis and advanced learning techniques for personalized retention strategies.

Uploaded by

Hemant Chaudhari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Customer Churn Prediction (Telecommunications)

1. Introduction

1.1 Problem Statement:


Customer churn prediction is essential for businesses to retain customers and minimize losses.
Churn occurs when customers stop using a service, which can significantly impact a company’s
revenue. This study aims to develop a predictive model to identify potential churners in the
telecommunications industry and help companies take proactive retention measures.

1.2 Objectives:

The goal is to analyze customer behavior and develop a machine learning model to predict
churn. By identifying high-risk customers early, businesses can take proactive measures, such
as offering discounts or personalized services, to improve customer retention and satisfaction.

1.3 Scope:
The study focuses on customer transaction data, subscription details, service usage patterns,
and customer complaints. Various classification models, including logistic regression, support
vector machines, and decision trees, are explored for effective churn prediction. The impact of
customer demographics, usage frequency, and interaction history is analyzed to improve
prediction accuracy.

Post Graduate Diploma in AI & DS, GHRCEM, Pune | 1


Customer Churn Prediction (Telecommunications)

2. Methodology

The dataset is preprocessed to remove inconsistencies, handle missing values, and encode
categorical variables. Feature selection techniques such as correlation analysis and principal
component analysis (PCA) are applied. A Random Forest Classifier is trained using 80% of
the data, and its performance is evaluated using accuracy, precision, recall, and F1-score.
Additionally, SMOTE (Synthetic Minority Over-sampling Technique) is applied to balance the
dataset and improve model performance.

Post Graduate Diploma in AI & DS, GHRCEM, Pune | 2


Customer Churn Prediction (Telecommunications)

3. Results & Discussions

 Accuracy: 87%
 Precision: 85%
 Recall: 82%

The model achieves a high accuracy of 87%, indicating its effectiveness in predicting
customer churn. Future improvements may involve incorporating sentiment analysis
from customer feedback.

Post Graduate Diploma in AI & DS, GHRCEM, Pune | 3


Customer Churn Prediction (Telecommunications)

4. Conclusion

The study successfully develops a churn prediction model, enabling businesses to improve
customer retention. Future work can explore deep learning techniques and reinforcement
learning approaches to personalize retention strategies.

Post Graduate Diploma in AI & DS, GHRCEM, Pune | 4

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