This post introduces the new advanced customer churn simulation for learning the techniques of Fighting Churn with data (FCWD). The book was originally released with a simple simulation. The simple simulation served a purpose, but was lacking: Some of the code from Fighting Churn with Data either would not run or produced meaningless results on the simple simulation. But the recently advanced churn simulation solves this. Now, all of the code in Fighting Churn With…
Creating a churn propensity model is now pretty standard for data scientists. Today churn is the most common data science problem in the world, because every company wants recurring revenue. But how do you go from a churn model to churn prevention? It is much harder than it sounds. The Hazards of Model Based Churn Prevention Suppose you have a machine learning model that can predict churn. This is commonly known as a churn propensity…
In my previous post on Machine Learning for Churn prediction, I showed that Machine Learning models (ML also known as AI) are the most accurate. But in the past, machine learning models suffered from being hard to explain. In my book, Fighting Churn With Data, I wrote that you should use Logistic Regression to explain churn. But I also showed that the machine learning model XGBoost gave higher accuracy. Now I recently learned about a…
Top 3 Lessons from Zuora’s new update to the Subscription Economy Index which I created: 1. Subscription companies are Killing It. Subscription sales expanded at a record 24% for the year ending in March. In comparison, traditional economy sales growing in the low single digits. 2. But the laws of physics still apply. In Q2 the largest subscription companies we tracked ramped up subscriber acquisition only to see Revenue Per Account fall flat, leading to…