Churn prediction is profitable for firms whose customers are under contract with regular payments (telecommunication, banks and other subscription based companies). It is said it is cheaper to save a customer rather than acquire a new one. That is true as long as you are not trying to save a customer who is actually not going to leave.
Churn prediction is based on examples of customers who have already left. The key is to find how they differed from the remainder. It’s usually those with unsuitable tariff, high invoice, changed tariff plan etc.
What you get is a customer-churn risk table together with the characteristics of customers with high churn rates. This can easily serve the management to adjust company’s policy in order to prevent customer losses. Furthermore, we are also able to recommend you strategies to save the customers who are about to leave.