Customer Churn – Logistic Regression with R

Treselle Systems Pvt Ltd edited this page Apr 28, 2017 · 1 revision

Customer Churn – Logistic Regression with R

Customer Churn Analysis

In the customer management lifecycle, customer churn refers to a decision made by the customer about ending the business relationship. It is also referred as loss of clients or customers. Customer loyalty and customer churn always add up to 100%. If a firm has a 60% of loyalty rate, then their loss or churn rate of customers is 40%.

As per 80/20 customer profitability rule, 20% of customers are generating 80% of revenue. So, it is very important to predict the users likely to churn from business relationship and the factors affecting the customer decisions. In this blog post, we are going to show how logistic regression model using R can be used to identify the customer churn in the telecom dataset.

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