Your Churn Threshold Is a Pricing Decision

# Your Churn Threshold Is a Pricing Decision When your company uses AI to predict which customers might leave, you're actually making a financial bet about how aggressively to try to keep them—and that decision should be based on how much it costs to retain someone versus how much you'll lose if they go, not just on what the AI model says. Most companies let their data scientists set this threshold without thinking about the business impact, which means they're either spending too much chasing unlikely-to-leave customers or ignoring warning signs that could have saved profitable accounts.
How unit economics should set your classification cutoff, and why they rarely do. The post Your Churn Threshold Is a Pricing Decision appeared first on Towards Data Science.
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