ChurnGuard, a SaaS company, developed a logistic regression model to predict customer churn based on user behavior and demographic data. Recently, stakeholders expressed concerns about the model's interpretability, despite achieving a 75% accuracy rate. The business needs to understand the model's decisions to better tailor retention strategies.
| Metric | Value |
|---|---|
| Accuracy | 0.75 |
| Precision | 0.68 |
| Recall | 0.60 |
| F1 Score | 0.64 |
| AUC-ROC | 0.80 |
| Feature Importance (Top 3) | Age (0.25), Last Purchase (0.20), Subscription Tier (0.15) |
While the model shows reasonable accuracy, the lack of transparency in its predictions raises concerns among the marketing team, who needs to understand key drivers of churn to implement effective interventions. Stakeholders are particularly interested in which features most influence churn decisions.