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Lesson

5. Measure the queue the team can actually work

Separate the risk of leaving from the effect of trying to retain a customer.

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Accuracy rarely helps when churn is uncommon. Average precision (AP) is a useful ranking summary. If you report "PR-AUC", say whether it means AP or trapezoidal area under the precision-recall curve, because they are computed differently. The scikit-learn AP definition weights precision by changes in recall. Average precision documentation.

ROC-AUC remains a valid discrimination measure, but it does not tell you whether precision is usable at the team's capacity. Precision depends on prevalence, so compare AP and precision-recall curves on comparable populations and show each cohort's churn rate.

ReportQuestion it answers
Churn prevalence and eligible countWhat population and difficulty did this score describe?
AP and ROC-AUCHow well does the model order customers across thresholds?
precision@kOf the k customers the team can investigate, how many later churn?
capture@k / recall at capacityWhat fraction of all observed churners is in that queue?
lift@kHow much more concentrated is churn in the queue than in the eligible population?
Reliability plot, log loss, Brier scoreAre the probabilities useful on future cohorts?
Cost or value by capacity, with intervalsDoes expanding the queue improve the stated objective?

An arithmetic example, not a benchmark result. In a matured cohort of 10,000 accounts, 500 churn. A queue of 1,000 contains 200 of them. Precision is 200 / 1,000 = 20%, capture is 200 / 500 = 40% and lift is 20% / 5% = 4. This is good risk concentration. It says nothing about how many of those customers a retention offer would save.

For a purely diagnostic alert with stated false-positive and false-negative losses, you can derive a probability threshold from those losses. For a retention campaign, use expected incremental value, action eligibility and capacity. Choose its operating point on the policy-selection cohort, freeze it and evaluate it on the final cohort. Choose at most k feasible actions with positive expected benefit, even if that leaves a quota unfilled. When budgets or action costs differ, use a constrained allocation instead of a single risk threshold.

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