Customer Churn Prediction

Predict and prevent customer churn to keep your existing customers satisfied and have a steady revenue stream

Customer Churn Prediction

Why customer churn is vital for all businesses

Customer churn is a scenario wherein your customers stop buying products or services from you. The fact is that customer loyalty is the key to generate a steady revenue stream. Acquiring new customers requires a lot of time, money and resources. However, calculating customer churn is not an easy task; and even among data scientists there is no universally agreed upon methodology on how to measure it. If you want to calculate your churn rate accurately you need to ask yourself these questions –

  • What is the customer lifetime value (CLV) of your customers?
  • What is your conversion rate?
  • What is your activity churn?

The right time to address customer churn is when you notice a drop in usage instead of waiting for the customer to cancel his subscription or completely stop visiting your site or store. In order to estimate future churn rates, businesses need to adopt predictive analysis and carry out predictive churn modeling.

How we tackled the issue of customer churn for a leading retailer

Our client, an online retailer, thought it was losing customers when it experienced a considerable amount of drop in sales. Our data science team used predictive models on their data sets and tracked the behavior of its regular users to know if and why its customers are switching over to another online shopping website.

This model also tracks what customers do before they are just about to leave and switch to another website. Along with this, we provided the company the best data visualization tools to help its decision makers understand the journey of their customers so that they could observe and know the common actions associated with customer churn.


  • Client was able to predict customer churn by keeping track of customer behavior so that they can take immediate steps to retain customers
  • Customer retention rate increased by 7% at the end of the first quarter after our project
  • It helped clients to strengthen relationships with existing customers
  • Overall revenue increased by 18% after implementing a system to measure customer churn prediction

How retailers and other companies can benefit from customer churn prediction

  • Preventing customer churn will save you from customer loss, which means fewer resources spent on trying to acquire new customers. This directly translates into maximized profits.
  • Keeping track of customer behavior will help you with customer segmentation so that you can identify the customers that generate more sales.
  • Knowing customer behavior will help you to predict their future purchases, so you can always keep those products in stock and deliver quickly to keep your customers happy and satisfied.
Let our data science team help you solve complex data and business problems