Customer Attrition Analysis And Retention Tactics For T Company

The productivity rises sharply along with the globalization of Economics andTechnology. The products and services are abundant and optional for customers, most ofthe markets have transcended to buyers’ market. Since the competition has beenaccelerating fiercely, the new market structure is defined by competition and the productorientation superseded by customer orientation. The customer churn emerges, the highvalue customer resources are focused by competitors and it became one of the KPI forcore competence of enterprises.Customer churn and customer retention are two aspects of the same phenomenonand the division of CRM. The object of study is the factor analysis for customer attritionof T Company (TC) and the modeling and tactics for customer retention. The litterateurreview, case study and experiment methods were applied during the research. This papermainly descripts: Firstly, the literature about customer churn and retention was reviewed,the industry gas, current situation of TC and customer churning were analyzed. Theattrition data mining analysis and modeling was introduced; Secondly, comparing the dataof customer churning of TC based on three algorithms for classification, validating&evaluating the performance of algorithms; Furthermore, the customer retention tacticsfor TC was addressed according to customer value and marketing matrix theory andliterature; Lastly, this paper summarizes the limitations and outlook for the further study.This paper aims at the customer value assessment with data mining model. Themanagement needs for customer segmentation and differentiation on service, targetingthe profitable customer resources, defines the suitable tactics for customer retention baseon the churning analysis. Maximizing the shareholders’ value under the restriction ofopex and with optimal of the restricted resources.