alexa Customer attrition analysis for financial services using proportional hazard models
Engineering

Engineering

Journal of Telecommunications System & Management

Author(s): Dirk Van den Poel, Bart Larivire

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This paper studies the topic of customer attrition in the context of a European financial services company. More specifically, we investigate predictors of churn incidence as part of customer relationship management (CRM). We contribute to the existing literature: (1) by combining several different types of predictors into one comprehensive retention model including several `new' types of time-varying covariates related to actual customer behaviour; (2) by analysing churn behaviour based on a truly random sample of the total population using longitudinal data from a data warehouse. Our findings suggest that: (1) demographic characteristics, environmental changes and stimulating `interactive and continuous' relationships with customers are of major concern when considering retention; (2) customer behaviour predictors only have a limited impact on attrition in terms of total products owned as well as the interpurchase time.

This article was published in European Journal of Operational Research and referenced in Journal of Telecommunications System & Management

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