Subscription Churn Model Confusion Matrix
This confusion matrix evaluates a subscription model that predicts whether a customer will stay or churn in a defined period. The churn-to-retain cell represents missed churn risk, while retain-to-churn represents customers who might receive unnecessary retention outreach. The correct balance depends on outreach cost, customer experience and expected value, not accuracy alone. Teams should set the outcome window before calculating the matrix and use a holdout period that reflects current customer behavior. This example uses aggregate counts and is intended for model evaluation, not for making automated customer decisions without appropriate review.
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Scenario
A retention team evaluates a model used to prioritize outreach.
Key decisions
- Define the outcome window: State when churn is measured.
- Review missed churn: These are actual churners predicted to stay.
- Review unnecessary outreach: Predicted churners who stay may receive offers.
When to reuse this
Use for prioritization analysis with privacy-reviewed, aggregated results.
Frequently asked questions
What is missed churn?
Why does false churn matter?
What is the outcome window?
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