Back to Glossary
Churn prediction is the process of identifying customers who are likely to stop using a product or service in the future. It is a predictive analytics technique commonly used in subscription-based businesses, SaaS companies, and consumer platforms.
Churn prediction models analyze historical behavior to estimate churn probability. Common signals include:
Decreasing usage
Fewer logins or sessions
Reduced feature adoption
Support complaints
Payment issues
Engagement drops
Machine learning models used for churn prediction include:
Logistic regression
Random forests
Gradient boosting
Neural networks
From a BI perspective, churn prediction outputs are often integrated into dashboards as risk scores or segments. This allows teams to:
Proactively engage at-risk customers
Prioritize retention efforts
Personalize offers
Improve onboarding
Accuracy depends heavily on data quality, feature engineering, and clear churn definitions. Poorly defined churn leads to misleading predictions.
Churn prediction turns analytics from reactive reporting into proactive intervention, allowing businesses to retain customers before revenue is lost.




