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Predicting Telecom Customer Churn

The project aims to predict customer churn and revenue in the telecom industry using regression analysis, focusing on understanding the factors that contribute to customer abandonment. The dataset from Kaggle contains records of 7,043 customers, including variables like tenure, monthly charges, and churn status, which will be analyzed using simple, multivariate, and logistic regression models. The expected outcomes include identifying key variables affecting churn and developing strategies to improve customer retention and revenue forecasting.

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Puja Biswas
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6 views2 pages

Predicting Telecom Customer Churn

The project aims to predict customer churn and revenue in the telecom industry using regression analysis, focusing on understanding the factors that contribute to customer abandonment. The dataset from Kaggle contains records of 7,043 customers, including variables like tenure, monthly charges, and churn status, which will be analyzed using simple, multivariate, and logistic regression models. The expected outcomes include identifying key variables affecting churn and developing strategies to improve customer retention and revenue forecasting.

Uploaded by

Puja Biswas
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Phase 1: Problem Definition & Data Collection

Project Title: Predicting Customer Churn and Revenue in the Telecom Industry Using
Regression Analysis

Problem Definition
Churn of customers which should be seen as customers abandoning a company is a major
challenge in telecom businesses. Loss to the company comes when the customers cease using
a certain service. It is far less costly to retain a customer in comparison to getting a new one.
Questions that many firms lack clarity and awareness are why the customers leave and what
factors cause them to make that decision. If it is possible to predict which customers are
likely to be leaving, then the company can take measures to retain them. Prediction of the
customer charges and revenue can assist in preparation of pricing strategies.

The central inquiry of the work in question is,


What contributes to customer churn and how can we make use of regression models to
forecast monthly charges and churn brand probability?

Dataset Information
I took Telco Customer Churn data from Kaggle IBM sample data in this research. It contains
records of 7,043 customers containing tenure, the length of time the customer has stayed, the
monthly charges, total charges, internet service type, contract type, mode of payment and
churn status Yes or No. The dataset is good since it has both the numerical and categorical
variables that are used in various regression models.

Why this data is appropriate


Simple Regression: The regression to predict monthly charges based on tenure.
Multivariate Regression Indicates how much charges can be predicted by a combination of
factors (tenure, contract type, and internet service).
Logistic Regression: To predict churning of the customer Yes/No using features as monthly
charges and the type of contract.

Expected Outcomes
In this project, I will be able to distinguish key variables that affect churn. I will also forecast
the impacts that tenure and contract have on charges. I will construct a model to forecast the
churn probability. These findings will assist the telecom firms to minimize churn and provide
better customer retention strategies.

Business Value
With the knowledge of why customers leave, the company will be able to formulate loyalty
programs and service provision improvements. Revenue and churn forecasting can save you
money and maximize profits.

URL
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