HomeConceptsChurn Prediction Model
Analytics

Case Study: Analytics Solution

Churn Prediction Model

Advanced machine learning model to identify SaaS customers at risk of cancellation.

Published March 15, 2024
1 min read

Technologies Used

Python
Snowflake
Salesforce
Lifelines
React
Dashboard showing customer health scores and churn risk factors

Predicting Departures Before They Happen

For subscription businesses, churn is the silent killer. We developed a Churn Prediction Model that goes beyond simple usage metrics. By analyzing product adoption depth, support ticket sentiment, and billing history, we calculate a daily 'Health Score' for every account. This allows Customer Success teams to intervene proactively, turning potential cancellations into renewal opportunities.

The Challenge

High monthly churn rate (5%) eroding growth.
Customer Success Managers (CSMs) reacting only after a cancellation request.
Lack of visibility into which product features correlated with retention.
Generic renewal emails sent to unhappy customers.

The Solution

Centralized product usage, billing, and support data in Snowflake.
Built a Survival Analysis model (Cox Proportional Hazards) to estimate churn risk.
Integrated risk scores directly into Salesforce for CSM visibility.
Automated 'save plays' (discounts, training offers) via email.

Key Features

Health Scoring

Composite score (0-100) indicating the likelihood of renewal.

  • Usage frequency
  • Feature breadth
  • NPS score

Risk Factors

Explainable AI showing *why* a customer is at risk.

  • Low login rate
  • Unresolved bugs
  • Price sensitivity

Revenue Impact

Forecast potential revenue loss and prioritize high-value accounts.

  • ARR at risk
  • Expansion opportunity
  • Contract health

Technology Stack

Python
Snowflake
Salesforce
Lifelines
React

Project Timeline & Results

1
Week 1-3

Data Unification

Created a 'Customer 360' view in Snowflake.

Ingested data from Mixpanel (usage), Stripe (billing), and Zendesk (support). Cleaned and joined the datasets to create a time-series record of customer behavior.

2
Week 4-6

Modeling & Validation

Model correctly identified 70% of churners 30 days in advance.

Trained the survival model. Identified that 'lack of integration activation' was the #1 predictor of churn in the first 90 days. Validated the model on a holdout set.

3
Week 7-9

Operationalization

Reduced churn by 15% in the first quarter.

Pushed risk scores to Salesforce. Set up alerts for CSMs when a key account's health dropped below 60. Launched automated email campaigns for lower-value at-risk accounts.

Interested in Churn Prediction Model?

Let's discuss how this concept can be tailored to your business needs and drive real results.

First concept

Last concept

Ask AI