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The need:
churn levels of 12-25% a year and the cost of acquiring
a customer is so high that it requires a customer to be
loyal to the mobile phone operator for 6 years to break
even.
Project Objective: Improvement in the retention rate resulting
in a substantial bearing on the profitability and to identify
the likelihood of customers to churn and provide the SAVE
team with an alert prior to the customer churning. Also
to understand the triggers to churn beyond the well understood
trigger of Bill Shock (negative reaction to the first
bill). Feed into the design of the warehouse being developed
within Vodafone for decision support activity.
The Technology: Neural Networks and decision tree induction. |
