What Is Customer Churn Prediction?

Customer Churn Prediction is the process of identifying customers who are likely to stop using a company’s services.

Churn is a major challenge for telecom and subscription-based businesses because:

• Retaining customers is more cost-effective than acquiring new ones.
• High churn reduces recurring revenue and profitability.
• Customer loss affects long-term growth and market stability.

Churn prediction helps answer important business questions such as:

• Which customers are at high risk of leaving?
• When is a customer most likely to churn?
• How can the company intervene before churn occurs?
• How can retention strategies be optimized?

In this project, churn prediction is performed by:

• Analyzing customer demographic and service usage data.
• Identifying patterns associated with churn behavior.
• Building a Logistic Regression model to predict churn probability.
• Evaluating performance using accuracy, precision, recall, and F1-score.
• Deploying the model for real-time prediction using Gradio.

This approach enables businesses to shift from reactive churn management to proactive customer retention.