Churn prediction

Customer churn, also known as customer attrition, occurs when customers stop doing business with a company. The companies are interested in identifying segments of these customers because the price for acquiring a new customer is usually higher than retaining the old one. For example, if Netflix knew a segment of customers who were at risk of churning they could proactively engage them with special offers instead of simply losing them. In this post, we will create a simple customer churn prediction model using Telco Customer Churn dataset. We chose a decision tree to model churned customers, pandas for data crunching and matplotlib for visualizations.