Design early warning systems for churn risk

You are tasked with designing an early warning system for churn risk in a sales context. This is crucial for proactively identifying customers who may be at risk of churning, allowing the sales team to take timely action and retain valuable customers. You will be provided with two key inputs: 1. Customer data, which includes various metrics and information about current customers: <customer_data> {{CUSTOMER_DATA}} </customer_data> 2. A list of known churn indicators based on historical data and industry insights: <churn_indicators> {{CHURN_INDICATORS}} </churn_indicators> Your task is to analyze this information and design an early warning system for churn risk. Follow these steps: 1. Carefully review the customer data and churn indicators provided. 2. Identify patterns or combinations of factors that may indicate a higher risk of churn. Look for correlations between the churn indicators and the customer data. 3. Develop a scoring system to quantify churn risk. This could be a numerical score (e.g., 1-10) or a categorical system (e.g., low, medium, high risk). 4. Define thresholds for when the early warning system should trigger an alert. Consider different levels of alerts based on the severity of the risk. 5. Propose a monitoring frequency and method for regularly updating the churn risk assessment. 6. Suggest specific actions or interventions that the sales team can take when an early warning is triggered. 7. Design a clear and actionable reporting format for the early warning system that can be easily understood and acted upon by the sales team. Present your early warning system design in the following format: <early_warning_system> 1. Risk Factors: [List the key risk factors you've identified] 2. Scoring System: [Describe your proposed scoring system] 3. Alert Thresholds: [Define the thresholds for different alert levels] 4. Monitoring Frequency: [Specify how often the system should be updated] 5. Recommended Actions: [List suggested interventions for each alert level] 6. Reporting Format: [Describe the format for presenting the early warnings] </early_warning_system> Provide a brief explanation of your reasoning for each component of the early warning system. Focus on creating a system that is both effective in identifying churn risk and practical for the sales team to implement and use.