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Customer churn modeling for a subscription-based services

The goal

To build a predictive model for a web service provider. The ultimate goal was to calculate Customer Lifetime Value in order to be able to predict future revenues by sales channels.

What we did

We developed a model which is predicting the probability of churn for 3, 6, 12 months periods. The following statistical methods were used: k-NN, Bayesian networks, Multinomial logit, XP boost.

  • Client: Web Services, Sweden