Solution Background and Business Value
Customer churn prediction helps businesses retain users by identifying those at risk of leaving and taking proactive steps to re-engage them. This is particularly useful for subscription-based services, e-commerce platforms, and streaming services. By using Kumo AI, businesses can:- Train a churn model tailored to their data and customer behavior.
- Use the Kumo REST API to export predictions to a CRM system.
- Send targeted notifications via email, SMS, or push notifications to customers likely to churn.
- Subscription churn: Predict users likely to cancel within the next 3 months.
- Inactivity churn: Predict users unlikely to log in within the next 7 days.
- Purchase churn: Predict users unlikely to make a purchase in the next 30 days.
Data Requirements and Schema
We start with a core set of tables and can add more for better predictions. Core Tables-
Users Table
- Stores customer information.
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Key attributes:
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user_id
: Unique identifier for each user. - Optional: Signup date, subscription status, location.
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Events Table
- Tracks user activity (e.g., purchases, logins, video streams).
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Key attributes:
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user_id
: Links to a user. -
timestamp
: Time of event. - Optional: Event type (purchase, session start, stream start).
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Items Table
- Contains details about products or content.
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Key attributes:
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item_id
: Unique identifier. - Optional: Product category, price, genre.
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- Merchants Table: Details about merchants in a marketplace.
- Sessions Table: Session start and end times for users.
- Clicks Table: User interactions with specific items.
- Reviews Table: User-generated product reviews.
Predictive Queries
Churn is defined as users who become inactive within a given timeframe. Below are three different ways to define churn: 1. Predicting Purchase ChurnBuilding models in Kumo SDK
1. Initialize the Kumo SDKDeployment Strategy
In production, churn prediction models are integrated into automated retention strategies:- Generate churn scores using Kumo.
- Filter users based on churn risk and store the scores.
- Export churn scores to CRM tools (e.g., Salesforce, Marketo, Braze).
- Trigger personalized engagement (e.g., emails, push notifications, discounts).
- Automate the process using workflow orchestration tools (e.g., Airflow, Dagster).