The telecommunications industry with an approximate annual churn rate of 30% can nowadays be considered as one of the top sectors on the list of those suffering from customer churn. Although different studies have focused on developing a predictive model for customer churn under contractual settings, the mobile telecommunications industry, performing in a non-contractual setting in which customer churn is not easy to define and trace, has always been neglected in such investigations. In this study, we have developed a dual-step computer-assisted model in which a clustering model and a classification model are employed for defining and predicting customer churn. Results indicate the promising performance of the proposed models in identifying future churners. © 2010 Taylor & Francis.
CITATION STYLE
Jahromi, A. T., Sepehri, M. M., Teimourpour, B., & Choobdar, S. (2010). Modeling customer churn in a non-contractual setting: The case of telecommunications service providers. Journal of Strategic Marketing, 18(7), 587–598. https://doi.org/10.1080/0965254X.2010.529158
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