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Abstract

The application of churn prevention represents an important step for mobile communication

companies aiming at increasing customer loyalty. In a machine learning perspective,

Customer Value Management departments require automated methods and processes to

create marketing campaigns able to identify the most appropriate churn prevention approach.

Moving towards a big data-driven environment, a deeper understanding of data

provided by churn processes and client operations is needed. In this context, a procedure

aiming at reducing the number of churners by planning a customized marketing campaign

is deployed through a data-driven approach. Decision Tree methodology is applied to drow

up a list of clients with churn propensity: in this way, customer analysis is detailed, as well

as the development of a marketing campaign, integrating the individual churn model with

viral churn perspective. The first step of the proposed procedure requires the evaluation of

churn probability for each customer, based on the influence of his social links. Then, the

customer profiling is performed considering (a) individual variables, (b) variables describing

customer-company interactions, (c) external variables. The main contribution of this work

is the development of a versatile procedure for viral churn prevention, applying Decision

Tree techniques in the telecommunication sector, and integrating a direct campaign from

the Customer Value Management marketing department to each customer with significant

churn risk. A case study of a mobile communication company is also presented to explain

the proposed procedure, as well as to analyze its real performance and results.

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Authors and Affiliations

Laura Lucantoni
Sara Antomarioni
Maurizio Bevilacqua
Filippo Emanuele Ciarapica

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