Predicting Customer Churn for a National Packaging Distribution Group

Empowering account managers with churn risk scores and dashboards to prioritize outreach and improve customer retention.

Technology
ML & Predictive Modeling
Geography
North America
Industry
B2B Distribution

Key results

82%

model accuracy in identifying customers at risk of churn

22%

drop in churn among mid- and high-value accounts within 6 months

5x

ROI from data-driven retention campaigns

15%

increase in sales team productivity through prioritized outreach

About the Client

A U.S.-based national distributor of rigid packaging solutions operating through a network of regional brands. The company serves clients across industrial, life sciences, food & beverage, and consumer goods sectors. Following rapid expansion through acquisitions, the client faced challenges with fragmented customer data and limited visibility into churn patterns.

Key Challenges

Fragmented customer data across merged ERP and CRM systems

Inability to detect early warning signs of customer disengagement

Revenue leakage from mid-value client attrition going unnoticed

Sales reps lacked clear prioritization to intervene with at-risk accounts

Our Approach

Centralizing Customer Data

  • Integrated data from ERP, CRM, order management, and support systems into Azure
  • Used Azure Data Lake Storage for raw data staging and Snowflake for data warehousing
  • Created customer-level data marts using dbt

Feature Engineering & Churn Definition

  • Defined churn as no orders in the last 120 days
  • Engineered features including RFM scores, support interactions, and order velocity
  • Segmented customers by geography, product line, and account tier

Predictive Churn Modeling

  • Built an XGBoost model in Python, hosted on Azure Virtual Machines
  • Evaluated model with precision, recall, and AUC to ensure business relevance
  • Automated weekly churn scoring using Azure Functions

Business Enablement

  • Developed Tableau dashboards tailored for sales and regional teams
  • Embedded churn scores and risk flags into CRM workflows
  • Trained account managers to act on churn indicators effectively

Implemented Solution

Azure-Based Data Platform

  • Azure Data Lake Storage for raw data landing and backup
  • Azure Data Factory (ADF) for schema standardization and ETL
  • Snowflake as the central data warehouse

Data Transformation & Modeling

  • Modular transformations using dbt for auditability
  • Built customer history snapshots for churn trend analysis
  • Created analytics-ready data marts for ML and reporting

Python-Based ML Pipeline

  • Churn model developed using XGBoost, scikit-learn, and pandas
  • Hosted on Azure Virtual Machines, with weekly scoring via Azure Functions
  • Scores stored in Snowflake for downstream consumption

Dashboarding & Alerts

  • Tableau dashboards connected to Snowflake via an extract connection
  • Views segmented by region, rep, and product category
  • Churn alerts pushed to CRM and email to enable proactive outreach

Technologies Used

No items found.
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