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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.

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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