Churn prediction and prevention in Digital Marketing - Cheat Sheet & Quick Revision

Recall & Review

beginner

What is churn in the context of customer behavior?

Churn means when customers stop using a product or service. It shows how many people leave over time.

beginner

Why is predicting churn important for businesses?

Predicting churn helps businesses keep customers by acting early. It saves money because keeping customers is cheaper than finding new ones.

intermediate

Name two common data types used to predict churn.

Customer activity data (like how often they use a service) and customer profile data (like age or location) are often used to predict churn.

intermediate

What is a simple machine learning model used for churn prediction?

A decision tree is a simple model that splits customers based on features to predict if they will churn or not.

beginner

Give one example of a prevention strategy after predicting a customer might churn.

Offering a special discount or personalized offer to the customer can help keep them from leaving.

What does churn prediction help a business do?

A Increase product prices

B Identify customers likely to leave

C Find new customers only

D Ignore customer feedback

Churn prediction helps identify customers who might leave so the business can try to keep them.

Which data is NOT typically used for churn prediction?

A Weather forecast

B Customer age

C Customer purchase history

D Customer service calls

Weather forecast is usually unrelated to predicting if a customer will leave.

What is a common output of a churn prediction model?

A Probability a customer will leave

B Customer's favorite color

C Number of new customers

D Product price

Churn models usually output the chance or probability that a customer will stop using the service.

Which action is a good churn prevention method?

A Increase subscription fees

B Ignore customer complaints

C Send personalized offers

D Stop marketing emails

Personalized offers can encourage customers to stay and reduce churn.

Which machine learning model is simple and often used for churn prediction?

A Neural network with 100 layers

B Sorting algorithm

C Random guessing

D Decision tree

Decision trees are simple and effective for predicting churn by splitting data based on features.

Explain what churn prediction is and why it matters for businesses.

Think about customers leaving and how businesses can act early.

Describe a simple approach to prevent customer churn after prediction.

What can a business do once it knows a customer might leave?