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Telecom customer churn prediction

Identifying high-risk customers before they cancel, enabling targeted retention campaigns that maximize ROI across a 5,000-customer base.

LightGBM SHAP Classification Cost-benefit analysis Telecom Customer retention
$141K
Estimated annual savings

Interactive dashboard

Five-page Streamlit application for exploring churn patterns and model outputs

Overview
  • Dataset summary and churn distribution
  • Key risk factors at a glance
  • Model selection and best parameters
Exploratory analysis
  • Churn rate by contract type and tenure
  • Monthly charges distribution by segment
  • Correlation heatmap of service features
Model performance
  • Four-model comparison with ROC curves
  • Confusion matrices and classification reports
  • Threshold optimization analysis
Explainability
  • SHAP summary and waterfall plots
  • Global and local feature importance
  • Individual customer prediction breakdown
Business impact
  • Cost-benefit curve across classification thresholds
  • Optimal threshold for net savings with $50 intervention cost vs. $75/month retained revenue
  • Full-base annual savings projection at 30% retention success rate
$ pip install -r requirements.txt && streamlit run app.py

Key results

LightGBM selected as the best model after four-model comparison with GridSearchCV

0.713
AUC-ROC
85%
Recall (churners caught)
$141K
Annual savings estimate
5,000
Customers analyzed

Methodology

Built on 5,000 telecom customer records with 20 features covering demographics, service subscriptions, billing, and tenure. Four classifiers were trained with GridSearchCV hyperparameter tuning. SHAP values provide both global and individual-level explanations. A cost-benefit framework with $50 intervention cost and $75/month retained revenue quantifies the business case for targeted retention.

Data preparation
Imputation, encoding, feature engineering
Model training
LR, RF, XGBoost, LightGBM
Explainability
SHAP global and local
Business impact
Threshold optimization, cost-benefit

Links