Theoretical and Applied Economics
No. 3 / 2026 (648), Autumn
Predicting customer churn using Machine Learning: models and core approaches
Bucharest University of Economic Studies, Romania
Abstract. Customer retention is fundamental to the growth of customer-centric businesses, especially in highly competitive subscription-based markets where customers can easily switch providers. High customer churn—the tendency of customers to stop engaging with a brand—can lead to significant material losses, reputational damage, and increased customer acquisition costs. This article reviews key strategies for proactive churn management using Machine Learning (ML) models. The findings indicate that integrating behavioral features with segmented ML models significantly enhances predictive accuracy compared to baseline models. The study discusses the essential steps in the ML workflow for churn prediction, including data collection, feature engineering, and customer segmentation. By identifying the research gap in real-time intervention strategies, this paper provides a framework for aligning ML outputs with marketing analytics.
Contents
Comparing portfolios built from intrinsic-value-based stock picks versus market-cap-weighted indices
The impact of shifting elasticity of substitution on international firm location: global macroeconomic implications
Social security contributions and growth constraints in Greece: breaking the fiscal rigidity trap
Predicting customer churn using Machine Learning: models and core approaches
Have we truly transitioned from industrial to service-based economies? An analysis of the economic sectoral distribution
Monetary-fiscal policy regimes and economic growth in Algeria: a Markov-switching analysis (1990Q2–2025Q4)
Does foreign aid reach the poorest? A multidimensional poverty analysis for Pakistan
Mathematical modeling of nearshoring and reshoring in the reconfiguration of trade flows
Analyzing the impact of agricultural growth on inclusive growth in Côte d'Ivoire: key challenges and opportunities
Credibility erosion and exchange rate pass-through in Türkiye
The aggregate banking-sector footprint of financial education mandates: cohort exposure, community bank margins, and an arithmetic of detection
The relationship between exchange rates, trade and economic growth in the Philippine context
Social sector expenditure, economic growth, and multidimensional poverty in India: evidence from panel data analysis
Capitalization of Romanian companies and macroeconomic variables: friends or foes?
The role of investment and trade in promoting economic growth in Ghana
Beyond generational decay: a psychosocial account of Generation Z’s changing relationship with achievement, education and work
Financial inclusion and sustainable development in Algeria: an empirical analysis using the ARDL Model (2004-2022)
The Impact of Fiscal Policy on Inflation in Romania
Comparing regional and global spillovers to the GCC equity markets
Tax pressure and governance in a spatially interdependent world: international evidence and Morocco’s positioning
Management and performance of territorial police structures: a conceptual framework based on indicators