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
Why it Matters ?
Enhances accuracy of churn prediction models.
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.