Customer Churn Model _ customer churn

Customer Churn

As a result of the implementation of various marketing tools, customers and enterprises to terminate the phenomenon of cooperation.

Common customer Churn:

1, enterprises and customers signed a clear contract, the termination of the contract after the customer is not renewed;

2, the customer last use of enterprise services directly over a certain period of time after no longer use of enterprise services. Common

Why do you want user churn alerts.

1, the Enterprise further development new user cost is very high;

2, an old customer's loss to the enterprise caused greater losses, usually, an old customer's value is equal to three

The value of new customers;

3, the loss of customers not only to enterprises to bring economic losses, but also to the reputation and reputation of the company caused harm;

So enterprises pay more and more attention to user churn analysis.

Customer Churn Analysis Method

Defined by business rules (empirical model): Industry experts according to his understanding of the industry, the loss of user experience summary, the user's behavior and the characteristics of the user to develop the corresponding rules, such as the loss of the user's age, income level, credit and so on. Use such a rule to filter user data, meet these rules of users belong to high risk users, may occur user churn, enterprises to these users to take some retention action and care strategy, and ensure that users continue to use Enterprise services.

Disadvantages: Because of the more and more abundant services provided by enterprises, the diversity and complexity of user's behavior lead to the difficulty of making user churn rules more and more.

Extracting from data (machine learning)

Let the data speak, using machine learning algorithm, the user behavior data Model establishment and prediction.

Analysis process

Customer Churn Analysis Application

Communications, business, finance, services