1.

Introduction
a. Problem statement
An E Commerce company is facing a lot of competition in the current market and it has become a
challenge to retain the existing customers in the current situation. Hence, the company wants to develop
a model through which they can do churn prediction of the accounts and provide segmented offers to the
potential churners. In this company, account churn is a major thing because 1 account can have multiple
customers. hence by losing one account the company might be losing more than one customer.
b. Need of the Study/Project
• • To understand the factors that are responsible for customer churn
• • To propose commercial actions aimed at maintaining clients that are showing signs of churn
and offer them customised offer
• • To develop a churn prediction model for this company
• • Provide business recommendations on the campaign.

c. Understanding Business/Social opportunity

The Average customer churn stands at 16.84%. Through this opportunity we have the ability to reduce
the costs associated with customer churn by a significant margin by identifying the leaks and
understanding the customer churn. Data shows the retaining existing customers is equally, if not more
important than acquiring new customers. The cost of acquiring new customers is five times higher than
the cost of retaining existing customers. While acquisition allows you to increase the number of