8 Forecasting churn

This chapter covers

  • Predicting the probability of customer churn with logistic regression
  • Understanding the relative influence of different behaviors on churn
  • Checking the calibration of your forecasts
  • Using churn forecasts to estimate customer lifetime and lifetime value

At this point, you know all the steps necessary to analyze churn and to design great customer metrics. Those metrics will allow businesspeople to make targeted interventions that should reduce the churn on their product. And those things are the most important for most products, so that’s why the techniques beginning in this chapter (part 3 of the book) can be considered to be special or extra tactics: you can use them if you need to, but they are not ...

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