Predictive churn modeling in the wireless industry

Date of publication: March 17, 2002


This paper describes a recently completed project at Verizon Wireless that addresses the problem of customer attrition (churn). Outstanding results have been accomplished by combining Data Mining techniques with effective one-to-one marketing campaigns in an effort to save customers in the extremely competitive Los Angeles market.Integrating CRM techniques with predictive modeling proved to be very effective in preserving Verizon's customer base. The methods used and experience gained through the project are explained, along with specific concrete examples of what did and did not work in the customer retention process. This should provide invaluable insight and guidelines on approaches used for those who are involved in similar efforts in the customer retention field.

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