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📊 Customer Churn Prediction - Telecom Industry

🚀 Project Overview

Customer churn is a major issue in telecom businesses. This project builds a predictive model to classify customers as churn or non-churn and provides insights to reduce customer loss.


🎯 Objective

  • 🔍 Predict customer churn
  • 📈 Identify key influencing factors
  • 👥 Segment customers (At Risk, Dormant, Loyal)
  • 💡 Provide business recommendations

🛠️ Tech Stack

  • 🐍 Python (Pandas, NumPy, Scikit-learn)
  • 📊 Matplotlib, Seaborn
  • 🌲 Random Forest Classifier
  • 🧠 SHAP (Explainability)
  • 🗄️ SQL (Concepts)

📂 Dataset

  • 📁 Telco Customer Churn Dataset
  • 🎯 Target: Churn (Yes/No)

🔄 Workflow

  1. 📥 Data Collection
  2. 🧹 Data Cleaning
  3. ⚙️ Feature Engineering
  4. 🔀 Train-Test Split
  5. 🤖 Model Building
  6. 📊 Evaluation
  7. 🔍 Explainability
  8. 👥 Customer Segmentation

📊 Key Insights

  • 📉 Month-to-month contracts have higher churn
  • 💰 High monthly charges increase churn risk
  • ⏳ Low tenure customers churn more
  • 📊 Long-term plans reduce churn

💡 Business Recommendations

  • 🎁 Promote long-term contracts
  • 📢 Improve onboarding experience
  • 📦 Offer bundled services
  • 🎯 Target at-risk customers

🧾 Sample SQL Queries

SELECT Churn, COUNT(*) 
FROM customers 
GROUP BY Churn;

SELECT Contract, Churn, COUNT(*) 
FROM customers 
GROUP BY Contract, Churn;

📈 Results

  • ✅ Good prediction accuracy
  • 🔍 Identified key churn drivers
  • 📊 Complete ML pipeline built

📌 Future Scope

  • 🚀 Try XGBoost / Deep Learning
  • 🌐 Deploy using Flask / Streamlit
  • 🔄 Real-time data integration

⭐ Star this repo if you found it useful!

About

This project predicts customer churn in the telecom industry using machine learning. It analyzes customer data, builds a Random Forest model, and identifies key factors influencing churn. It also includes customer segmentation and actionable insights to help improve retention and reduce customer loss.

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