A Research Of Telecom Industry Customer Churn Management Based On Data Mining

With the global telecommunications service becoming liberalization and internationalization, the competition of national telecommunications market is increasingly fierce. In our country, telecommunications operators in order to strive for more customers, except for a simple price competition, they constantly bring out new packages and new businesses to acquire customer resources preferentially. Competition between industries is intensifying, the phenomenon of double cards is more and more serious, which to a great extent increases the instability of the customers; In addition, the rapid development of Internet technology has a huge effect to the traditional telecom businesses, taking away a large number of telecom users. Relevant research shows that retaining an old customer costs lower cost but gets higher profits than developing a new customer, and digging out clients from the hand of the competitors is doubly difficult. Facing the current market competition situation and market trend, telecom operators must develop new customers, at the same time, get roll a comprehensive management of customer churn, effectively carry out the existing customer operations and improve the customer targeted marketing services strategy, retain customers by the constantly practice of customer relationship management, so as to realize the maximization of the enterprise’s economic benefit and social benefit. At present, there are still some deficiencies exist in telecom industry’s customer churn management:(1)Customers often have really churned when warning, it’s unable to retain;(2) Without further analysis of the real reason for customer churning and the possibility of customers can be retained;(3) the lack of targeted retention work.General retain cannot effectively to retain customers, must according to the real reason for churn and all kinds of habits, preferences and other information of the customers to take targeted measures to retain, throw the good, which can retain customers effectively and reduce customer churning. To meet these requirements, the main research contents are as follows: (1)By reading a lot of literature about the application of data mining in customer churn management, and point out the shortage of the present study and developing trend, customer relationship management (CRM) theories and the main classification algorithms of data mining are introduced.(2)modeling analysis in stages to the loss-value and churn of Z’s customers with Logistic method, at the same time setting rules by analyzing the laws of customer’s churn to monitor the loss of customers, both models and rules, make the forecast more comprehensive, eventually get the list of losing customers.(3)Aim at the losing customers, analyze the reasons of loss, and model the opportunity of retain, calculate the probability of the successful retention.(4)Finally from the point of marketing, combining with the reason for the loss of customers, make the right marketing plan for customers can retain.Through positive analysis of customer churn management of Z’s Mobile Communications Corporation, providing a useful reference for telecom industry to use data mining technology to the application of customer relationship management and customer behavior analysis, and also has great practical significance in the development of telecom industry and the Maintenance of good relationship with customers and enhancing the competitiveness of the enterprise.