Churn Case Studies
This case study chapter brings two business cases in the domain of churn, both unique in many ways, combining almost all the topics covered inside book. The first business case presents a retail company facing new competitors and consequently preparing a customer-retention strategy. The case introduces the business environment in which the company was operating prior to the arrival of new competitors while the model is being devised for the purpose of preventing or at least buffering the churn trend as a reaction to the new competition. Development of an early warning indicator system based on data mining methods is also described as a support to the management in the early detection of both market opportunities and threats. The second business case describes the situation in a telecommunication company in the domain of churn prediction and churn mitigation. The churn project was divided into a few stages and is fully described in the chapter. The case explains how the company can decrease the churn rate and gives directions for better understanding of customer needs and behaviors.