Computer assisted customer churn management: State-of-the-art and future trends

Authors:
John Hadden;Ashutosh Tiwari;Rajkumar Roy;Dymitr Ruta
Affiliations:
Enterprise Integration, Cranfield University, Cranfield, Bedfordshire MK43 0AL, UK;Enterprise Integration, Cranfield University, Cranfield, Bedfordshire MK43 0AL, UK;Enterprise Integration, Cranfield University, Cranfield, Bedfordshire MK43 0AL, UK;British Telecom, Adastal Park, Ipswich, Suffolk IP5 3RE, UK
Venue:
Computers and Operations Research
Year:
2007

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Abstract

A business incurs much higher charges when attempting to win new customers than to retain existing ones. As a result, much research has been invested into new ways of identifying those customers who have a high risk of churning. However, customer retention efforts have also been costing organisations large amounts of resource. In response to these issues, the next generation of churn management should focus on accuracy. A variety of churn management techniques have been developed as a response to the above requirements. The focus of this paper is to review some of the most popular technologies that have been identified in the literature for the development of a customer churn management platform. The advantages and disadvantages of the identified technologies are discussed, and a discussion on the future research directions is offered.