05 / Analytics
AI Feature Churn Analytics ft. SAP
During a co-op placement at SAP, I built a predictive churn model for enterprise SaaS customers across the SMB segment, and designed the intervention playbook used by the CS team.
Company
SAP x WiDS Case Competition
Role
Case Competition Participant
Year
Feb – Mar 2024
Tags
01 / Role & Scope
Scope
Led a team in SAP's case competition (1st place out of 40 teams). I directed the analytical approach, shaped the segmentation strategy, and owned the final recommendation we presented to judges.
02 / Problem
Two Churn Problems
SAP had invested $1.1B in AI capabilities for its business software, but the investment was creating a new churn risk. Some users couldn't figure out the AI features and disengaged entirely. Others were using them heavily but found the personalization shallow and unsatisfying. Both groups were churning, but for completely different reasons. A single retention strategy couldn't address both.
03 / Solution
ARC
We started with bivariate and correlation analysis across the user data and found something that reframed the whole problem: age was heavily negatively correlated (-0.79) with AI interaction levels. Low interaction and low satisfaction were both driving churn, but in different populations.
I pushed the team to run cluster analysis rather than treating churn as one monolithic metric. That surfaced two distinct at-risk segments. "Aging Churners" were an older demographic with the highest churn rates and minimal AI engagement. They weren't dissatisfied with the AI. They weren't using it at all. "Unsatisfied Customer-Service Seekers" were younger, high-engagement users who interacted with AI features constantly but found the personalization generic and unhelpful.
That segmentation drove the entire strategy. For Aging Churners, we proposed a change management support service with consultants working directly with organizations to drive adoption. For the Unsatisfied Seekers, we designed a machine learning personalization engine that would adapt UI, workflows, and process optimization suggestions based on individual user behavior. We called the combined framework ARC, and we built it around the principle that you can't fix churn you haven't properly segmented.
We also recommended SAP evaluate its AI solutions through an ethical lens covering accountability, privacy, bias, and accessibility, since the adoption barriers we found had real equity implications.
04 / Result
What Shipped
The ARC strategy projected a 5-10% improvement in AI personalization effectiveness and service satisfaction, with targeted churn reduction in the highest-risk segment. Won 1st place out of 40 competing teams.
05 / What It Unlocked
The Insight
The segmentation-first approach became the foundation of the entire recommendation. Without splitting the problem into two distinct user groups, every solution we could have proposed would have partially addressed one group while ignoring the other.