Telecommunications Churn (Binomial Logistic Regression)

Logistic regression is a statistical technique for classifying records based on values of input fields. It is analogous to linear regression but takes a categorical target field instead of a numeric one.

This example uses the stream named telco_churn.str, which references the data file named telco.sav. These files are available from the Demos directory of any IBM® SPSS® Modeler installation. This can be accessed from the IBM SPSS Modeler program group on the Windows Start menu. The telco_churn.str file is in the streams directory.

For example, suppose a telecommunications provider is concerned about the number of customers it is losing to competitors. If service usage data can be used to predict which customers are liable to transfer to another provider, offers can be customized to retain as many customers as possible.

This example focuses on using usage data to predict customer loss (churn). Because the target has two distinct categories, a binomial model is used. In the case of a target with multiple categories, a multinomial model could be created instead. See the topic Classifying Telecommunications Customers (Multinomial Logistic Regression) for more information.

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