Customer churn is the percentage of customers that stopped using your company's product or service during a certain time frame. It's important because it costs more to acquire new customers than it does to retain existing customers. In fact, an increase in customer retention of just 5% can create at least a 25% increase in profit. This is because returning customers will likely spend 67% more on your company's products and services. As a result, your company can spend less on the operating costs of having to acquire new customers. You don't need to spend time and money on convincing an existing customer to select your company over competitors because they've already made that decision.
Steps:
- Data Preprocessing - Data observation, visulizations, removing duplicates
- Algorithm: Linear Regression
- Result and Evaluation.