Premium
A BI‐LEVEL DECISION MODEL FOR CUSTOMER CHURN ANALYSIS
Author(s) -
Gao Ya,
Zhang Guangquan,
Lu Jie,
Ma Jun
Publication year - 2014
Publication title -
computational intelligence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.353
H-Index - 52
eISSN - 1467-8640
pISSN - 0824-7935
DOI - 10.1111/coin.12008
Subject(s) - computer science , decision model , service provider , service (business) , customer relationship management , customer service , service level , decision support system , operations research , data mining , machine learning , business , marketing , mathematics , database
This paper develops a bi‐level decision model and a solution approach to optimizing service features for a company to reduce its customer churn rate. First, a bi‐level decision model, together with its modeling approach, are developed to describe the gaming relationship between decision makers in a company (service provider) and its customers. Then, a practical solution approach to reaching solutions for the bi‐level‐modeled customer churn problem is developed. Finally, experiments and case studies are conducted to illustrate the bi‐level decision model and the solution approach.