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mia_stephens

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May 28, 2014

Customer Churn Case - Neural Networks

The Customer Churn analytics case study.  The complete collection of analytics cases is available from Collection: Analytics Case Study Library.

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Key ideas:

Neural networks, activation functions, model validation, confusion matrix, lift, prediction profiler, variable importance.

Background:

Customer retention is a challenge in the ultracompetitive mobile phone industry. A mobile phone company is studying factors related to customer churn, a term used for customers who have moved to another service provider.

The Task:

The company would like to build a model to predict which customers are most likely to move their service to a competitor. This knowledge will be used to identify customers for targeted interventions, with the ultimate goal of reducing churn.

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From Building Better Models with JMP® Pro, Chapter 7, SAS Press (2015). Grayson, Gardner and Stephens. Used with permission.

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