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…
This article discusses using machine learning algorithms to forecast churn risks. Continued from Part 1, in which the XGBoost machine learning model and how it can be used to predict churn is presented. This post demonstrates the code and some results for real data. Below, chapter 9 listing 6 from the book (Fighting Churn With Data) shows XGBoost cross-validation for regression in python. (All the code from Fighting Churn With Data can be found at…
This post discusses forecasting churn risks using machine learning algorithms. In this article, I’m going to introduce the basic ideas of machine learning (ML) and a particular algorithm called XGBoost. If you are already familiar with these topics then skip to my next post which dives into the details of using these methods to forecast churn. Forecasting churn risk with machine learning You can forecast churn with a regression in which predictions are made by…