Applying Survival Analysis to Telecom Churn Data


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Masarifoglu M., Büyüklü A. H.

American Journal of Theoretical and Applied Statistics, vol.8, no.6, pp.261-275, 2019 (Refereed Journals of Other Institutions)

  • Publication Type: Article / Article
  • Volume: 8 Issue: 6
  • Publication Date: 2019
  • Doi Number: 10.11648/j.ajtas.20190806.18
  • Title of Journal : American Journal of Theoretical and Applied Statistics
  • Page Numbers: pp.261-275

Abstract

In competitive telecommunication environment, it is imperative to maintain an effective customer retention strategy

even while mobile service operators attracting new customers. Not only acquiring new customers costly process, but successful

customer retention helps build brand loyalty and good business reputation. Motivated by real mobile service operator data set, we

designed and proposed a solution to employ survival analysis technique that estimates customers’ survivals and hazards. We aim

to examine the impact of: campaign, tariff, tenure, age, auto-payment on survival times and hazards. After hazard ratios and

survival experiences determined for each predictor, results enable mobile service operator to target the right customers to

incentivize so that they can stay with their current operator. Proactive actions triggered by the results of the survival model is key

to customer retention.