Customer Retention via Data Mining

  • Authors:
  • Kiansing Ng;Huan Liu

  • Affiliations:
  • School of Computing, National University of Singapore, 119260 (E-mail: ngkians1@comp.nus.edu.sg);School of Computing, National University of Singapore, 119260 (E-mail: liuh@comp.nus.edu.sg

  • Venue:
  • Artificial Intelligence Review - Issues on the application of data mining
  • Year:
  • 2000

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Abstract

``Customer Retention'' is an increasingly pressing issue intoday's ever-competitive commercial arena. This is especially relevantand important for sales and services related industries. Motivated by areal-world problem faced by a large company, we proposed a solution thatintegrates various techniques of data mining, such as featureselection via induction, deviation analysis, and mining multipleconcept-level association rules to form an intuitive and novel approachto gauging customer loyalty and predicting their likelihood ofdefection. Immediate action triggered by these ``early-warnings''resulting from data mining is often the key to eventual customerretention.