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Portela, S. & Menezes, R. (2010). Analysing the customer churn risk using duration models. Journal of Combinatorics, Information & System Sciences: A Quarterly International Scientific Journal. 35 (1-2), 203-220
S. M. Portela and R. M. Menezes, "Analysing the customer churn risk using duration models", in Journal of Combinatorics, Information & System Sciences: A Quarterly Int. Scientific Journal, vol. 35, no. 1-2, pp. 203-220, 2010
@article{portela2010_1732354987200, author = "Portela, S. and Menezes, R.", title = "Analysing the customer churn risk using duration models", journal = "Journal of Combinatorics, Information & System Sciences: A Quarterly International Scientific Journal", year = "2010", volume = "35", number = "1-2", pages = "203-220", url = "https://www.printspublications.com/journal/journalofcombinatoricsinformationsystemsciencesaquarterlyinternationalscientificjournal16632080702246932604" }
TY - JOUR TI - Analysing the customer churn risk using duration models T2 - Journal of Combinatorics, Information & System Sciences: A Quarterly International Scientific Journal VL - 35 IS - 1-2 AU - Portela, S. AU - Menezes, R. PY - 2010 SP - 203-220 SN - 0250-9628 UR - https://www.printspublications.com/journal/journalofcombinatoricsinformationsystemsciencesaquarterlyinternationalscientificjournal16632080702246932604 AB - Customer churn is the customer’s decision to terminate the relationship with a provider. This decision can be very onerous to the business financial performance. As such, an a priori knowledge about the probability (risk) of a given customer to cancel the relationship with the firm in the next period is a valuable tool that allows firms to take preventive measures to avoid the defection of potentially profitable customers. This study aims to understand and predict customer lifetime in a contractual setting in order to improve the practice of customer portfolio management. A duration model is developed to understand and predict the residential customer churn in the fixed telecommunications industry in Portugal. The model is developed by using large-scale data from an internal database of a Portuguese company which presents bundled offers of ADSL, fixed line telephone, pay-TV and home-video. The model is estimated with a large number of covariates, which includes customer’s basic information, demographics, churn flag, customer historical information about usage, billing, subscription, credit, and other ER -