Churn Case Study

This section specifies about the theoretical background of the project. It introduces concepts such as customer relationship management, customer churn management, and how can this be dealt using concepts of data mining.

Customer relationship management

Galbreath and Rogers (1999) defines CRM as- Activities a business performs to identify, qualify, acquire, develop and retain increasingly loyal and profitable customers by delivering the right product or service, to the right customer, through the right channel, at the right time and the right cost. CRM integrates sales, marketing, service, enterprise resource planning and supply-chain management functions through business process automation, technology solutions, and information resources to

It is always easier to retain your old customers rather than finding new ones. Imagine the cost of buying something new rather than getting your old device repaired. In a similar manner, the customers who already have trust in the brand and are well acquainted to the services will be easier to keep rather than investing in getting new customers all together. You have start from the start, explain about your service and let them know the offers and then they might subscribe to the service which you are offering. There are many factors which affect churn and the major two factors are deliberate churn and incidental churn. When a customer moves to another company which offers advanced technology, better features, better support, and lower price etc. deliberate churn occurs. Incidental churn is caused because of economic factors such as lower price and customer simply chooses the product which is cheaper. Most of the companies try to prevent deliberate churn as incidental churn is beyond their control most of the

First a quote is given which contains information about pricing, customer information, partner information etc. The payment process is also decided in and the review of quote is done. This process is followed by registering a deal of the subscription service. Details about the deal such as intended use, deal source, date, probability, cost estimate, technology mix, competitors etc. are determined. Finally, the product is ordered and the invoice is sent to the customer. Details about subscription renewal are also sent along with