Prediction models built from real customer activity.
A telecom company with 7,043 customers is losing more than one in four. Management assumed it was price competition. The data told a different story entirely. We built a binary classification model on SageMaker Canvas using the IBM Telco Customer Churn dataset — a real-world benchmark used across the industry.
The model identified contract type as the dominant churn signal — not price, not service issues. Month-to-month customers churned at dramatically higher rates than customers on annual or two-year agreements. New customers in their first year on month-to-month contracts represented the single highest-risk profile in the entire customer base.
Key takeaway: The signal that mattered wasn't price or service quality. It was contract type. Retention teams that work month-to-month customers in their first year are working the right segment.
Behavioral signals (time on site, email engagement, CRM tagging) predict conversion far better than demographics. Top driver: CRM tagging at 25.6% of model impact. Rep capacity recovered: ~31%.
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