Detecting Customer Defections: An Application of Continuous Duration Models

Portela, Sofia; Menezes, Rui

doi:10.20460/jgsm.2011515809

Cited by 3 publications

(2 citation statements)

References 35 publications

(44 reference statements)

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“…According to Rust and Zahorik [1993] attracting new customers may be five times as costly as keeping existing ones. As Portela and Menezes [2011] revealed, customer retention became a buzzword in the 1990 s, mainly due to the work of Reichheld and Sasser [1990], who first evidenced its advantages [Carroll, 1992;Dowling, Uncles, 1997;East, Hammond, Gendall, 2006;Gupta, Zeithami, 2006;Reinartz, Kumar, 2000]. Although, their results did not converge in all respects, these works changed related marketing theories.…”

Section: Customer Retentionmentioning

confidence: 99%

An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications

Adebiyi

Oyatoye

Kuye

2015

International Journal of Management and Economics

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The introduction of mobile number portability (MNP) in the Nigerian telecommunications industry has brought a new challenge for mobile operators. This study investigates the use of Analytic Hierarchy Process (AHP) in customer retention decisions in the Nigerian telecommunication industry using a cross-sectional survey design. Primary data were obtained through questionnaires administered to 480 mobile telecommunications subscribers in six tertiary institutions located in Lagos State, Nigeria. These educational institutions were chosen using a multistage sampling technique. Of 438 questionnaires received from subscribers, 408 were valid. Based on this sample data an AHP model was built to assess the determinants of customer retention decisions. Next, eigen values, an eigen vector and maximum lambda (λ Max ) were obtained using the AHP analysis for the matrices. This analysis shows that customers considered call quality as the important in the retention decision. We conclude that AHP is a meaningful tool for determining

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Section: Customer Retentionmentioning

confidence: 99%

An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications

Adebiyi

Oyatoye

Kuye

2015

International Journal of Management and Economics

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“…This study examines the relevant customer's churn drivers (mobile phone subscribers), churn rate and present the motivation for churning among service provider by subscribers. In fact, customer`s churn, which is the decision of customers to terminate the relationship with a provider, is a major concern for telecommunication firms in most countries in the world (Portela & Menezes, 2011). Thus, if a customer terminates a membership agreement with one telecommunication company in this era of MNP and become subscriber of another competitor while he/she maintains the original number, this subscriber is called a churn customer.…”

Section: Introductionmentioning

confidence: 99%

Relevant Drivers for Customers` Churn and Retention Decision in the Nigerian Mobile Telecommunication Industry

Adebiyi¹,

Oyatoye²,

Amole³

2016

JOC

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The need for better support marketing decision on customers who are likely to leave a service provider for a competitor is very essential to the survival of most telecommunication firms. The application of logistic regression to the study of customer churn and retention decision in the Nigerian telecommunication industry falls into proactive methods, which helps in a better understanding of the needs of subscribers, to be able to predict their churn and retention decision in the industry and enhance better marketing strategies with a research driven policy guide for the operators in the industry. The purpose of this study is to ascertain the relevant drivers of customers` churn and retention in the growing Nigerian mobile telecommunication industry. Considering this issue, the logistic regression models have been used as the evaluating method. Four hundred and eight questionnaires have been used in this study. The population of this questionnaire consists of subscribers of mobile telecommunication in the six selected campuses of higher institution of learning in Lagos-state, Nigeria. The data collected was analysed by STATA 12 software. The results showed that the coefficients of mobile number portability (MNP) services and dubious promotions are positive and significant. Furthermore, low coverage and unwanted calls and SMS are positive and significant. This implies that the better the availability of MNP services, the greater the likelihood of customers' churn. More so, an increase in quality of calls provided by mobile telecom firms will increase the likelihood of customers' loyalty by retention. The study recommends strong institutional measures for the overhaul of mobile services provision towards an improved service delivery in Nigeria.

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Extended Cox Modeling of Customer Retention in Mobile Telecommunication Sector of Rwanda

Ingabire¹

2015

AJTAS

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Retaining customers improves profitability, importantly reduces the cost incurred in acquiring new customers and moreover a firm can increase profits by 25-95 percent if it could improve its customer retention rates by 5 percent. As markets mature and competitive pressure intensifies, companies can no longer ignore the importance of customer retention as their existing customer bases have become their precious assets. This research aims to model customer retention in Rwandan telecom sector using survival analysis technique in order to inform the concerned institutions and companies about telecom customer retention in Rwanda. The Cox regression model and extended Cox model were developed using simulation approach in order to assess which model is the best for customer retention. It was found that the customer's socioeconomic , demographic and behavioral characteristics have an effect on churn rate. The extended Cox model was the best description of how customer retention is achieved. These findings hold implications for industry operators on key areas to pay attention to in order to achieve customer retention.

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Detecting Customer Defections: An Application of Continuous Duration Models

Abstract: ABSTRACT

Cited by 3 publications

References 35 publications

An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications

An Analytic Hierarchy Process Analysis: Application to Subscriber Retention Decisions in the Nigerian Mobile Telecommunications

Relevant Drivers for Customers` Churn and Retention Decision in the Nigerian Mobile Telecommunication Industry

Extended Cox Modeling of Customer Retention in Mobile Telecommunication Sector of Rwanda

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