Case studies in applying data mining for churn analysis

The advent of price and product comparison sites now makes it even more important to retain customers and identify those that might be at risk of leaving. The use of data mining methods has been widely advocated for predicting customer churn. This paper presents two case studies that utilize decision tree learning methods to develop models for predicting churn for a software company. The first case study aims to predict churn for organizations which currently have an ongoing project, to determine if organizations are likely to continue with other projects. While the second case study presents a more traditional example, where the aim is to predict organizations likely to cease being a subscriber to a service. The case studies include presentation of the accuracy of the models using a standard methodology as well as comparing the results with what happened in practice. Both case studies show the significant savings that can be made, plus potential increase in revenue by using decision tree learning for churn analysis

Determinants and Antecedents of Relationship Marketing Orientation

This study investigates the extent of Relationship Marketing Orientation (RMO) in the banking sector of Egypt. The need to deliver a superior value to bank customers has assumed paramount importance as competition intensifies at a fast pace and local consumers become more demanding. This study attempts to answer whether the bank’s ownership style will influence the extent of the bank’s relationship marketing orientation. This empirical study of 32 Egyptian banks is based on the antecedents and determinants of RMO elected from the literature. Findings suggest that different ownership of a bank may exert a different emphasis on RMO. The study reports that RMO is determined by ten antecedents of relationship marketing

Loyalty in Crisis: Evidence from Greece

This chapter examines customer loyalty across the supply chain during the economic crisis in Greece. Financial crisis started in Greece in 2008 and has resulted in severe recession. In 2011 Greece's total economic output was 16% below the pre-crisis peak. Government deficit and government debt in 2010 reached −10.6 and 144.9% of Gross Domestic Product, respectively (Eurostat, 2013). The current economic climate in Greece and elsewhere in Europe means that firms have to deal with high uncertainty and difficulties into remaining within competition. Hence, it is vital for firms to keep their customers since economic crisis means that it is not easy to invest into the acquisition of new customers. The importance of this study lies to the fact that no sufficient literature exists relating to the impact of the current financial crisis on customer loyalty across the supply chain. This gap of knowledge in the existing literature should be addressed as companies and academics would be interested in the results of our research since it could enlighten them regarding the marketplace and the customer needs, while it can help them to better manage, formulate and implement a customer driven marketing strategy

The benefits of an e-business performance measurement system

This chapter investigates how organizations have been adapting their performance measurement practices in response to their adoption of e-business in their business operations. It aims to identify the features and benefits of an effective e-business performance measurement system. Twelve organizations known to have had some success in developing performance measurement systems suitable for the online environment were studied. The researchers found that these organizations adopted an incremental rather than a radical approach to changing their performance measurement system for e-business, thereby avoiding the costs and disruption associated with the introduction of more complex performance metrics. Secondly, they eschewed the use of best practice recipes (such as the balanced scorecard). The study concludes that although these results may be at odds with the prescriptive generic performance measurement literature, they may be appropriate for the current state of development of e-business