Customer churn prediction - A case study in retail banking

Teemu Mutanen, Sami Nousiainen, Jussi Ahola

Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

3 Citations (Scopus)

Abstract

This work focuses on one of the central topics in customer relationship management (CRM): transfer of valuable customers to a competitor. Customer retention rate has a strong impact on customer lifetime value, and understanding the true value of a possible customer churn will help the company in its customer relationship management. Customer value analysis along with customer churn predictions will help marketing programs target more specific groups of customers. We predict customer churn with logistic regression techniques and analyze the churning and nonchurning customers by using data from a consumer retail banking company. The result of the case study show that using conventional statistical methods to identify possible churners can be successful.
Original languageEnglish
Title of host publicationData Mining for Business Applications
EditorsCarlos Soares, Rayid Ghani
Pages77-83
Volume218
DOIs
Publication statusPublished - 2010
MoE publication typeD2 Article in professional manuals or guides or professional information systems or text book material

Publication series

NameFrontiers in Artificial Intelligence and Applications
PublisherIOSPress
Volume218

Fingerprint

Customer churn
Prediction
Retail banking
Customer relationship management
Competitors
Logistic regression
Marketing
Customer lifetime value
Statistical methods
Customer retention
Customer value
Value analysis

Keywords

  • Churn
  • customer churn
  • retail banking

Cite this

Mutanen, T., Nousiainen, S., & Ahola, J. (2010). Customer churn prediction - A case study in retail banking. In C. Soares, & R. Ghani (Eds.), Data Mining for Business Applications (Vol. 218, pp. 77-83). Frontiers in Artificial Intelligence and Applications, Vol.. 218 https://doi.org/10.3233/978-1-60750-633-1-77
Mutanen, Teemu ; Nousiainen, Sami ; Ahola, Jussi. / Customer churn prediction - A case study in retail banking. Data Mining for Business Applications. editor / Carlos Soares ; Rayid Ghani. Vol. 218 2010. pp. 77-83 (Frontiers in Artificial Intelligence and Applications, Vol. 218).
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Mutanen, T, Nousiainen, S & Ahola, J 2010, Customer churn prediction - A case study in retail banking. in C Soares & R Ghani (eds), Data Mining for Business Applications. vol. 218, Frontiers in Artificial Intelligence and Applications, vol. 218, pp. 77-83. https://doi.org/10.3233/978-1-60750-633-1-77

Customer churn prediction - A case study in retail banking. / Mutanen, Teemu; Nousiainen, Sami; Ahola, Jussi.

Data Mining for Business Applications. ed. / Carlos Soares; Rayid Ghani. Vol. 218 2010. p. 77-83 (Frontiers in Artificial Intelligence and Applications, Vol. 218).

Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

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Mutanen T, Nousiainen S, Ahola J. Customer churn prediction - A case study in retail banking. In Soares C, Ghani R, editors, Data Mining for Business Applications. Vol. 218. 2010. p. 77-83. (Frontiers in Artificial Intelligence and Applications, Vol. 218). https://doi.org/10.3233/978-1-60750-633-1-77