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Customer churn prediction - a case study in retail banking

  • Teemu Mutanen
  • , Jussi Ahola
  • , Sami Nousiainen

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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
Place of PublicationAmsterdam
PublisherIOS Press
Chapter2
Pages77-83
ISBN (Electronic)978-1-60750-633-1
ISBN (Print)978-1-60750-632-4
DOIs
Publication statusPublished - 2006
MoE publication typeA4 Article in a conference publication
EventECML PKDD 2006 Workshop on Practical Data Mining: Applications, Experiences and Challenges - Berlin, Germany
Duration: 18 Sept 200622 Sept 2006

Publication series

SeriesFrontiers in Artificial Intelligence and Applications
Volume218
ISSN0922-6389

Conference

ConferenceECML PKDD 2006 Workshop on Practical Data Mining
Country/TerritoryGermany
CityBerlin
Period18/09/0622/09/06

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