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1、標(biāo)題:PredictingCustomerChurnintheTelecommunicationsIndustry––AnApplicationofSurvivalAnalysisModelingUsingSAS原文:ABSTRACTConventionalstatisticalmethods(e.g.logisticsregressiondecisiontreeetc.)areverysuccessfulinpredictingcus
2、tomerchurn.Howeverthesemethodscouldhardlypredictwhencustomerswillchurnhowlongthecustomerswillstaywith.Thegoalofthisstudyistoapplysurvivalanalysistechniquestopredictcustomerchurnbyusingdatafromatelecommunicationscompany.T
3、hisstudywillhelptelecommunicationscompaniesunderstcustomerchurnriskcustomerchurnhazardinatimingmannerbypredictingwhichcustomerwillchurnwhentheywillchurn.Thefindingsfromthisstudyarehelpfulftelecommunicationscompaniestoopt
4、imizetheircustomerretentiontreatmentresourcesintheirchurnreductioneffts.INTRODUCTIONInthetelecommunicationindustrycustomersareabletochooseamongmultipleserviceprovidersactivelyexercisetheirrightsofswitchingfromoneservicep
5、rovidertoanother.Inthisfiercelycompetitivemarketcustomersdemtailedproductsbetterservicesatlesspriceswhileserviceprovidersconstantlyfocusonacquisitionsastheirbusinessgoals.Giventhefactthatthetelecommunicationsindustryexpe
6、riencesanaverageof3035percentannualchurnrateitcosts510timesmetorecruitanewcustomerthantoretainanexistingonecustomerretentionhasnowbecomeevenmeimptantthancustomeracquisition.Fmanyincumbentoperatsretaininghighprofitablecus
7、tomersisthenumberonebusinesspain.Manytelecommunicationscompaniesdeployretentionstrategiesinsynchronizingprogramsprocessestokeepcustomerslongerbyprovidingthemwithtailedproductsservices.Withretentionstrategiesinplacemanyco
8、mpaniesstarttoincludechurnreductionasoneoftheirbusinessgoals.Indertosuppttelecommunicationscompaniesmanagechurnreductionnotonlydoweneedtopredictwhichcustomersareathighriskofchurnbutalsowemonthlybillsareconsideredinthestu
9、dy.Highvaluecustomersarethesewithmonthlyaveragerevenueof$Xmefthelastthreemonths.Ifacustomer’sfirstinvoicecoverslessthan30daysofservicethenthecustomermonthlyrevenueispratedtoafullmonth’srevenue.Granularity–Thisstudyexamin
10、escustomerchurnattheaccountlevel.Exclusions–Thisstudydoesnotdistinguishinternationalcustomersfromdomesticcustomers.Howeveritisdesirabletoinvestigateinternationalcustomerchurnseparatelyfromdomesticcustomerchurninthefuture
11、.Alsothisstudydoesnotincludeemployeeaccountssincechurnfemployeeaccountsisnotofaproblemaninterestfthecompany.SURVIVALANALYSISCUSTOMERCHURNSurvivalanalysisisaclanofstatisticalmethodsfstudyingtheoccurrencetimingofevents.Fro
12、mthebeginningsurvivalanalysiswasdesignedflongitudinaldataontheoccurrenceofevents.Keepingtrackofcustomerchurnisagoodexampleofsurvivaldata.Survivaldatahavetwocommonfeaturesthataredifficulttohlewithconventionalstatisticalme
13、thods:censingtimedependentcovariates.Generallysurvivalfunctionhazardfunctionareusedtodescribethestatusofcustomersurvivalduringthetenureofobservation.Thesurvivalfunctiongivestheprobabilityofsurvivingbeyondacertaintimepoin
14、tt.Howeverthehazardfunctiondescribestheriskofevent(inthiscasecustomerchurn)inanintervaltimeaftertimetconditionalonthecustomeralreadysurvivedtotimet.Therefethehazardfunctionismeintuitivetouseinsurvivalanalysisbecauseitatt
15、emptstoquantifytheinstantaneousriskthatcustomerchurnwilltakeplaceattimetgiventhatthecustomeralreadysurvivedtotimet.Fsurvivalanalysisthebestobservationplanisprospective.Webeginobservingasetofcustomersatsomewelldefinedpoin
16、toftime(calledtheiginoftime)thenfollowthemfsomesubstantialperiodoftimerecdingthetimesatwhichcustomerchurnsoccur.It’snotnecessarythateverycustomerexperiencechurn(customerswhoareyettoexperiencechurnarecalledcensedcaseswhil
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