Introduction

The success of a company is highly dependent on its ability to attract new customers while holding on to the existing ones. Churn refers to the situation where a customer of a company stops using its product and leaves the company. Churn can be anything—employee churn from a company, customer churn from a mobile subscription, and so on. Predicting customer churn is important for an organization because acquiring new customers is easy but retaining them is more difficult. Similarly, high employee churn can also affect a company, since the companies spend a huge sum of money on grooming talent. Also, organizations that have high retention rates benefit from consistent growth, which can also lead to high referrals from existing customers. Churn prediction is one of the most common use cases of machine learning.

You learned about supervised learning in the previous chapters, where you gained hands-on experience in solving regression problems. When it comes to predicting...