Customer Story

Understand Causes of Customer Churn

Customer retention is a top priority for most businesses as the cost of acquiring new customers is high and constant churn creates a drag on profitability. Understanding why customers churn with AI delivers a clearer path to reliable results.

Learn how Verizon Wireless gained actionable insights from data and proactively identified 30% of churn.

50-Ways-Verizon

The Challenge

• Pre-paid churn rates higher than post-paid
• Predict churn-likely customers before next bill
  • Target them with remediation or marketing
• 32 million prepaid transactions daily
  • 40 different channels
  • 100+ transaction types

The Solution

• Capture all real-time data and aggregate
  • Complex pre-processing process
• In-depth feature engineering process:
  • 200 attributes collected; 80 generated
• Compared 7 models – GBT selected:
  • Accuracy
  • Model confidence

Your Impact

• Gained actionable insights from data
• Identified leading indicators of churn for:
  • Pre-paid customers
  • Post-paid customers
• Were able to proactively identify 30% of churn
• Able to challenge fundamental assumptions
  • What was causing the churn?
  • How addressable is the problem?

Learn more about churn prevention with RapidMiner

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