Customer Churn Rate Analysis in Fashion E-Commerce Using Logistic Regression and Random Forest Muhammad Hadi (a*), Sri Rahayu Hijrah Hati, Ph.D (b)
a) Faculty of Economics and Business, Universitas Indonesia, Jakarta, 10340, Indonesia
*muhammad.hadi92[at]ui.ac.id
b) Faculty of Economics and Business, Universitas Indonesia, Jakarta, 10340, Indonesia
Abstract
E-commerce companies think about long-term customer relationships in terms of conversion rates and repeat purchase rates. It is more cost-effective to retain existing customers than to acquire new ones, which is why it is crucial to track customers at high risk of turnover and target them with retention strategies. This research aims to analyze and identify what factors play a significant role in e-commerce to the customer^s conversion rate and the impact on the churn rate of a customer in the next month. This research is used some data on one of the fashion e-commerce in Indonesia and used logistic regression and random forest model to get to the research^s objective. The research has expected to help provide insight to business entities that can better manage customer retention by taking appropriate strategic and business steps after knowing the customer^s profile who does not continue to use the company^s services.
Keywords: : Customer Churn Rate- E-Commerce- Big Data- Logistic Regression- Random Forest
