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AI-Powered Customer Churn Prediction and Prevention System

unosquare.com

Telecommunications

Information technology

Financial services

High Customer Churn Rate

Global Telecom Solutions is experiencing a high rate of customer churn, leading to significant revenue loss and increased customer acquisition costs. Current churn prediction methods are inaccurate and fail to identify at-risk customers proactively. The company needs a more sophisticated solution to identify and prevent churn effectively.

About the Client

Global Telecom Solutions is a leading provider of telecommunications services, including mobile, internet, and television, serving millions of customers worldwide.

Project Goals

Reduce customer churn rate by 15% within the next 12 months.
Improve the accuracy of churn prediction models to at least 80%.
Enable proactive customer engagement to retain at-risk customers.
Increase customer lifetime value.

Functional Requirements

Customer Segmentation: Automatically segment customers based on churn risk.
Churn Prediction: Predict churn probability for each customer with a high degree of accuracy.
Automated Alerts: Trigger alerts for customers identified as high-risk.
Personalized Intervention Recommendations: Provide recommended actions for customer service and marketing teams to prevent churn (e.g., targeted offers, proactive support).
Reporting and Analytics: Track churn rates, model performance, and the effectiveness of intervention strategies.

Preferred Technologies

Python

TensorFlow/Keras

AWS SageMaker

SQL Database

Required Integrations

CRM System (Salesforce)
Billing System
Customer Service Platform

Non-Functional Requirements

Scalability: The system must be able to handle a large volume of customer data and traffic.
Performance: Churn predictions should be generated in real-time or near real-time.
Security: Data privacy and security must be ensured, complying with relevant regulations (e.g., GDPR).
Maintainability: The system should be designed for easy maintenance and updates.

Expected Business Impact

Successful implementation of this system is expected to result in significant cost savings from reduced churn, increased revenue through improved customer retention, enhanced customer loyalty, and a stronger competitive position in the telecommunications market. It will also improve the efficiency of customer service and marketing operations.