arXiv Machine Learning By Md Rezwanul Islam, Wael Mohammed

Seasonal false alarms in customer churn and decline early-warning systems: adjacent-window labels confound seasonality with decline, and a year-over-year correction

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The paper investigates how seasonal labeling in customer churn and decline early‑warning systems can misclassify seasonal activity as decline, leading to false alarms. By aligning the baseline to the same calendar months one year earlier, the authors demonstrate a significant improvement in model performance (ROC‑AUC rises from 0.767 to 0.864) and a reduction in the number of flagged accounts. The study quantifies the extent of the problem across public and production datasets and shows that the proposed correction reduces intervention load while maintaining predictive accuracy.

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