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🧠 Predicting Freemium to Premium Adoption 🎵

📌 Project Overview

Website XYZ, a music-listening social networking platform, operates on a freemium model — offering basic services for free, with additional premium features via a subscription. This project aims to predict which users are most likely to convert from free to premium subscribers within 6 months if targeted by a marketing campaign.

🎯 Business Objective

To identify high-potential customers likely to adopt premium features, enabling targeted promotional campaigns that increase ROI, reduce wasted outreach, and maximize customer value.

🔍 Problem Statement

Given user behavioral and social features, build a classifier to predict the probability of adoption if the user is included in the next marketing campaign.

🧪 Techniques Used

  • Addressed class imbalance (few adopters)
  • Nested Cross-Validation for robust model selection
  • Hyperparameter tuning for XGBoost
  • Threshold tuning for recall optimization
  • SHAP explainability to uncover key drivers of adoption
  • ROI simulation and LLM campaign suggestions

🧠 Final Model

  • Model: XGBoost Classifier
  • Target Metric: Maximized Recall (important for reaching all potential adopters)
  • Threshold: Tuned to optimize lift and reduce false negatives
  • Top Model Features:
    • Increase in songs listened over time
    • Count of loved tracks
    • Social network activity
    • Engagement spikes

📊 Interactive Dashboard (Streamlit)

Use the deployed dashboard to:

  • Upload customer data
  • Get live adoption predictions
  • Simulate ROI with custom cost/revenue assumptions
  • Visualize SHAP explanations and lift curves
  • Receive LLM-based campaign suggestions

👉 Live App Link

(Marketing Campaign - Customer Targeting Tool)

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Predicting which people would be likely to convert from free users to premium subscribers in the next 6 month period, if they are targeted by our promotional campaign.

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