Empowering Business Decisions with Scalable Churn Prediction

Explore how Aimpoint Digital’s Decision Sciences team leveraged Databricks to develop and deploy an end-to-end churn prediction model for an information technology client.

Key takeaways
10+
data sources unified
90%
decrease in model runtime
TECH STACK
Company Logo Icon
Industry
Technology
Location
Seattle, WA
SERVICES
Decision Sciences
Decision Sciences
Empowering decision-makers one model at a time
Product
No items found.
TECH STACK
Databricks
Azure

The Challenge

The client, a large technology company, struggled with customer retention and churn prediction. Broad-stroke approaches to customer retention are often cost ineffective and can prompt churn in customers that would not have otherwise left. In the B2B sector, underlying data is often large, inconsistent, and difficult to manage without integrating business knowledge with technical expertise. Left unaddressed, this leads to ineffective churn modeling. The client turned to us for a scalable and actionable churn model to enable more informed retention efforts.

Our Approach

The Aimpoint Digital team worked closely with the client’s business and technical teams to design an end-to-end machine learning pipeline. This pipeline scored customers based on their likelihood to churn, enabling the client to create targeted retention plans and prioritize outreach. The full solution was developed and deployed in the client’s Databricks environment over 24 weeks.

The foundation of any model should be a strong understanding of the underlying data. With churn modeling, this means having a deep understanding of customer behaviors—how they engage with the business, why they leave, and what differentiates positive from negative experiences. Working closely with the client’s business teams, we consolidated insights from over 10 disparate teams and worked closely with the data owners to transform this information into validated features. The resulting feature set created a unified, holistic view of each customer’s life with the client.

The full pipeline, designed using Databricks Asset Bundles and jobs, was created as a robust testing framework. Through a combination of optimizing for Databricks compute, developing custom pipelines, and utilizing MLflow tracking, we reduced iterative runtimes from data to hours, allowing the team to understand the impact of newly developed features on the model on the same day.

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Results

RESULT #01
Spearheaded Company-Wide Strategic Initiative

The churn model supported a broader retention strategy with insights deployed to 100+ service reps alongside new tools designed to inform retention specialists and improve customer engagement.

Empowering Business Decisions with Scalable Churn Prediction
RESULT #02
Improved Accuracy Over Legacy Solutions

The client’s previous churn model lacked alignment and actionable insights. By collaborating with end-users, we developed an improved model that delivers directly actionable predictions tailored to business operations.

Empowering Business Decisions with Scalable Churn Prediction
RESULT #03
Identified Future Actions

While a churn model can predict churn, it cannot prevent it. To see real impact, specific actions should be taken based on analysis of the data. The Aimpoint Digital team was able to identify and suggest future actions to test based on initial model results.

Empowering Business Decisions with Scalable Churn Prediction

Key Takeaways

The ability to predict and prevent customer churn can be the difference between growth and decline.  In the B2B space, however, churn prediction presents unique challenges  specific to each organization.

The Aimpoint Digital team, leveraging deep technical expertise, partnered closely with business and data leaders to understand these nuances, develop a clear action plan, and deliver a  productionized model that is actively in use today.

While model development is critical, it’s the collaboration, enablement, and added insights that truly define a partnership with the Aimpoint Digital team.

10+
data sources unified
90%
decrease in model runtime

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