Customer Churn

Pacific Gas & Electric (PG&E) entrusted us with a crucial mission – identifying customers at risk of leaving their service. The client aimed to enhance customer retention by proactively identifying and addressing potential churn, a vital concern for utility companies.

Our research journey was supported by a comprehensive dataset encompassing 5,000 records collected over one year. This dataset served as the foundation for our quest to predict customer churn accurately.

The research question was clear and impactful: “What is the probability that customers will leave?” This research question guided our efforts as we navigated the intricate terrain of customer churn prediction.

We embarked on a sophisticated analytical journey to address this research question effectively. We conducted churn analyses tailored to the utility industry, leveraging diverse data sources, including customer addresses, gas consumption patterns, product preferences, and contract terms. Additionally, we crafted a precise “Churn Probability” metric to gauge the likelihood of customer attrition as accurately as possible.

Our analytical endeavor yielded a significant revelation: Our meticulous churn analyses and predictive modeling unveiled a notable probability – a 69.93% likelihood that customers were at risk of leaving PG&E’s service. This finding served as a pivotal milestone, equipping the client with the knowledge to address customer retention strategically.

Armed with our findings, the client gained a crucial strategic advantage. They could now identify customers at risk of leaving with a high degree of accuracy. This insight allowed them to implement targeted strategies to retain these valuable customers proactively.

In summary, this project fulfilled PG&E’s specific need to predict customer churn accurately and identify at-risk customers. The research findings empowered the client to develop customer-centric retention strategies, ultimately enhancing customer satisfaction and bolstering their competitive edge in the utility industry.


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