Migration of customers owing to a service substitution

Abstract

Customers continuously migrate from legacy products to new substitutes as new technologies and products emerge. This article analyzes the migration of customers from a legacy product to a new technological substitute, based on customers historical activity data. The analysis constructs individual migration profiles and forecasts future migration behavior of each customer, as well as segmenting customers based on their migration patterns. Companies can use this analysis to forecast demand for legacy products and new substitutes, and to identify customers for targeted marketing campaigns. A case study illustrates the analysis.