Predicting Customer Churn Using CLV in Insurance Industry

Journal of System Management

مقاله 3، دوره 2، شماره 1، فروردین 2016، صفحه 39-49

نوع مقاله: Research Paper

نویسندگان

Vahid Dust Mohammadi^* ؛ Amir Albadvi؛ Babak Teymorpur

Department of Industrial Engineering, Tarbit Modares University, Tehran, Iran

چکیده

Today, increased level of customer awareness caused them
to access to the other suppliers easily and they can get their services
from the competitors with similar or even better quality and same price.
Therefore, focusing on customers and preventing them to leave, has been
the most important strategy for any company. Researches have shown
that retaining former customers is cheaper than attracting new ones. In
the proposed model in this article we first identified important factors
causing customers in insurance industry, to have a specific behavior by
using a k-means clustering algorithm, and then we tried to predict the
future behavior of them by a logistic regression. Our model accuracy is
98%.

کلیدواژه‌ها

Customer churn؛ customer lifetime value؛ k-means clustering؛ Logistic regression؛ Insurance Industry

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