TCCS

Machine Learning TC Case Study

Business Goals:

1. Retaining high profitable customers is the number one business goal.
2. This project is based on the Indian and Southeast Asian market.
3. In the Indian and the southeast Asian market, approximately 80% of revenue comes from the top 20% customers (called high-value customers). Thus, if we can reduce churn of the high-value customers, we will be able to reduce significant revenue leakage.
4. The business objective is to predict the churn in the last (i.e. the ninth) month using the data (features) from the first three months. To do this task well, understanding the typical customer behaviour during churn will be helpful.

Analysis Goals:

1. Predict which customers are at high risk of churn
2. Build predictive models to identify customers at high risk of churn and identify the main indicators of churn.
3. Prepaid is the most common model in India and southeast Asia. Focus on prepaid customers.
4. Curn definition used-- "Usage-based churn: Customers who have not done any usage, either incoming or outgoing - in terms of calls, internet etc. over a period of time." In this project, we will use the usage-based definition to define churn.
5. In this project, you will define high-value customers based on a certain metric (mentioned later below) and predict churn only on high-value customers.
6. especially high-value customers go through three phases of customer lifecycle: a. The ‘good’ phase, b. The ‘action’ phase, c. The ‘churn’ phase