Customer Churn Prediction Accuracy
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Category:  
Analytical

Measures how accurately the service team can forecast which customers are likely to leave.

What it Measures ?

How well we predict customer loss.

Relevant StakeHolders 

Data Science, Marketing

In-depth Use Case / Real-world Example

This KPI evaluates the accuracy of models or methods used to predict customer churn. For example, if a model predicts 100 customers may churn and 85 actually do, the prediction accuracy is 85%. This is critical in manufacturing service divisions that rely on renewals of maintenance contracts. Higher accuracy enables proactive retention strategies to reduce churn and improve service revenues.

KPI Definition

Business Value

Movement Direction

Sample Formula

Predicted Churn Accuracy / Total Churn Events

Should Aim For
1
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