In the telecom industry, customers are able to choose from multiple service providers and actively switch from one operator to another. In this highly competitive market, the telecommunications industry experiences an average of 15-25% annual churn rate. Given the fact that it costs 5-10 times more to acquire a new customer than to retain an existing one, customer retention has now become even more important than customer acquisition.
loc_ic_mou_8- reduce in the number of minutes of usage in August increase the probability of churning a customer.av_rech_amt_call_data_8- reduce in the average of recharges of call and data in the action phase i.e. August month, is a strong indicator that the customer is likely to churn.arpu_diff- reduce in the average revenue per user increases the likelyhood of churn.total_og_mou_diff- denotes the difference between previous month and current month of outgoing minutes of call. A drop in minutes of usage means rise in the probability of churn.last_day_rch_amt_8- if the customer doesn't recharge in the action phase, this means he is likely to churn.total_og_mou_8- decrease in outgoing calls means the customer is not happy with the service and hence he is likely to churn.roam_ic_mou_8androam_og_mou_8- increase in the amount of roaming minutes in month of august suggests that the customer has changed his location and hence will likely churn.arpu_8- increase in average revenue per user in month of august means the company is generating more revenue from the user and the user might feel that the recharge amount are getting expensive. Hence he is more likely to churn.