Interpretable Cost-Sensitive Predictive Modeling for Churn-Oriented Decision Optimization in Business Analytics
This research presents an interpretable, cost-sensitive predictive modeling framework for early decision optimization in business analytics, with a specific focus on customer churn prediction. The study integrates traditional interpretable machine learning models, including Logistic Regression, Random Forest, and Gradient Boosting, with a business-oriented cost framework to move beyond conventional accuracy-based evaluation. Using a real-world customer dataset, the proposed framework evaluates models not only on standard performance metrics such as accuracy, precision, recall, and F1-score, but also on their financial impact measured through business loss. The results demonstrate that the model with the highest statistical accuracy is not necessarily the most optimal from a business decision perspective. Furthermore, the research emphasizes interpretability by analyzing feature-level contributions, enabling decision-makers to understand the drivers behind churn predictions and to design targeted intervention strategies. This work provides a practical, data-driven decision support approach that bridges the gap between predictive analytics and real-world business value, making it especially suitable for managerial and operational decision-making contexts.
Authors
- M.Z. Abdullah (ORCID: https://orcid.org/0000-0002-5353-6162)
Institutions
- Oldham Council (GB)
Publication Details
- Journal
- Zenodo (CERN European Organization for Nuclear Research)
- Published
- 2026-01-26
- DOI
- https://doi.org/10.5281/zenodo.18372293
- Primary Topic
- Customer churn and segmentation
- Type
- article
- Field-Weighted Citation Impact
- 0.00