Telecommunication Customer Churn Predication

In recent years, the telecommunication market has been very competitive. The cost of retaining existing telecommunication customers is lower than attracting new customers. Customer churn is the act of a customer ending a subscription to a service provider and choosing the services of anoth

Project Title

Telecommunication Customer Churn Predication

Project Area of Specialization

Artificial Intelligence

Project Summary

In recent years, the telecommunication market has been very competitive. The cost of retaining existing telecommunication customers is lower than attracting new customers. Customer churn is the act of a customer ending a subscription to a service provider and choosing the services of another company. It is necessary for a telecommunication company to understand customer churn through Customer Management relationship(CRM) analyzer. 

 To retain existing customers ,customer relationship management (CRM) analyzers must predict which customers will churn and analyze the reasons for customer churn. Once the at-risk customers are identified, the company must perform marketing campaigns for churn customers to maximize the churn-customer retention. Therefore, customer-churn prediction is an important part of customer relationship management (CRM).

Project Objectives

1. To retain customers at high risk of churn by proactively engaging with them.

1. To train a classification based model to predict which customer is most likely to leave the services in future.

1. To learn from the past behaviour of distinctive customers and predict future behaviour of existing customers.

1. To indirectly interact with the customer and stay updated about drawbacks of the company that arises with time.

1. To keep a telecommunication company alive by offering customers with latest attracting offers and resolving different customers issues related to telecommunication.

1. To stay in the market in a competitive environment.

Project Implementation Method

We aimed to build a system that predicts the churn of customers in a telecom company.The system will be implemented by designing an end-to-end data pipeline. We will require a decent amount of customers data which will be transformed and processed using data pipeline. At last a predictive analytical model will be trained on data, which will predict final results. The system will be implemented at IT section of a telecom company, predict whether a customer is more likely to churn or not. Further constructive actions can be taken by a telecom company to prevent customer from leaving the services.

Benefits of the Project

Cost-effective. Recent studies show that it cost 5 percent more to acquire a new customer than it does to keep a current one. It costs 16x more to bring a new customer up to the same level as a current one and 82 percent of companies agree that retention is cheaper to execute than acquisition. It also costs more to court new customers because of all the ads you have to pay for, the marketing legwork, customer education, and many more that go into winning new customers. Existing customers, on the other hand, already have a working knowledge of what your product does. That means mess talk time for your customer service representatives.

Free marketing. Loyal customers who love your product will never stop talking about it: to their family members, acquaintances, and just whoever has a willing ear to listen. That is some valuable free marketing that you will never get anywhere else, not even through business process outsourcing services.

Devoted customers are more tolerant. Your customers have come to know you as a friend—or in more intimate cases, a family member. This statement rings true if you take car owners for instance. Many Americans have stayed loyal to General Motors over the years it has existed and you will hear children buy the same Chevy or Cadillac model that their father or great-grandfather had bought. By familiarity and sentiment, loyal customers will be more forgiving and will stick by your product no matter what your slip-up or blunder may be.

Freedom to experiment and innovate. Since it is established that loyal customers will stick by you no matter what, you will be free to experiment and innovate to show your customers how important it is to keep developing your product (and make a profit in return). Loyal customers will be able to give you enough wiggle room to try new things. This brings us to the next point.

Ready feedback. Your loyal customers should be the first ones to be informed about any new product or innovation, and they should also be the first ones to tell you whether you are on the right track with it or not. Engaged customers will provide your business with the feedback that you need. That being said, loyal customers may tend to be the most resistant to change, and they will make it known if they do not like something. Take heed.

Better Employee Health. Loyal customers are, for the most part, happy customers. If customers are happy, then it is assured that your employees are pleased too: the less angry customers call into your call center outsourcing, the happier your employees are. Take advantage of these moments to make your employees feel that they are being cared for by the company they are working for too.

Technical Details of Final Deliverable

A well established end-to-end data pipeline with pretrained anlaytical model that will predict customers that are more likely to leave a telecom company. Past record of a customer will be feeded in the data pipeline, which will transform and process it. Finally an analytical model will predict whether the concerning customer is going to churn or not on the basis of past record.

Final Deliverable of the Project

Software System

Core Industry

Telecommunication

Other Industries

Finance

Core Technology

Artificial Intelligence(AI)

Other Technologies

Big Data

Sustainable Development Goals

Industry, Innovation and Infrastructure

Required Resources

If you need this project, please contact me on contact@adikhanofficial.com