American Journal of Theoretical and Applied Statistics

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Applying Survival Analysis to Telecom Churn Data

Received: 12 February 2018    Accepted: 05 March 2018    Published: 02 December 2019
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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.

DOI 10.11648/j.ajtas.20190806.18
Published in American Journal of Theoretical and Applied Statistics (Volume 8, Issue 6, November 2019)
Page(s) 261-275
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Customer Retention, Telecom Churn Prediction, Survival Analysis

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Author Information
  • Department of Statistics, Yildiz Technical University, ?stanbul, Turkey

  • Department of Statistics, Yildiz Technical University, ?stanbul, Turkey

Cite This Article
  • APA Style

    Melik Masarifoglu, Ali Hakan Buyuklu. (2019). Applying Survival Analysis to Telecom Churn Data. American Journal of Theoretical and Applied Statistics, 8(6), 261-275. https://doi.org/10.11648/j.ajtas.20190806.18

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    ACS Style

    Melik Masarifoglu; Ali Hakan Buyuklu. Applying Survival Analysis to Telecom Churn Data. Am. J. Theor. Appl. Stat. 2019, 8(6), 261-275. doi: 10.11648/j.ajtas.20190806.18

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    AMA Style

    Melik Masarifoglu, Ali Hakan Buyuklu. Applying Survival Analysis to Telecom Churn Data. Am J Theor Appl Stat. 2019;8(6):261-275. doi: 10.11648/j.ajtas.20190806.18

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  • @article{10.11648/j.ajtas.20190806.18,
      author = {Melik Masarifoglu and Ali Hakan Buyuklu},
      title = {Applying Survival Analysis to Telecom Churn Data},
      journal = {American Journal of Theoretical and Applied Statistics},
      volume = {8},
      number = {6},
      pages = {261-275},
      doi = {10.11648/j.ajtas.20190806.18},
      url = {https://doi.org/10.11648/j.ajtas.20190806.18},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajtas.20190806.18},
      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.},
     year = {2019}
    }
    

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    T1  - Applying Survival Analysis to Telecom Churn Data
    AU  - Melik Masarifoglu
    AU  - Ali Hakan Buyuklu
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    AB  - 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.
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