Predicting Customer Churn Using CLV in Insurance Industry
محورهای موضوعی : Business StrategyVahid Dust Mohammadi 1 , Amir Albadvi 2 , Babak Teymorpur 3
1 - Department of Industrial Engineering,
Tarbit Modares University,
Tehran, Iran
2 - Department of Industrial Engineering,
Tarbit Modares University,
Tehran, Iran
3 - Department of Industrial Engineering,
Tarbit Modares University,
Tehran, Iran
کلید واژه: Insurance Industry, customer lifetime value, Logistic regression, Customer churn, k-means clustering,
چکیده مقاله :
Today, increased level of customer awareness caused themto access to the other suppliers easily and they can get their servicesfrom the competitors with similar or even better quality and same price.Therefore, focusing on customers and preventing them to leave, has beenthe most important strategy for any company. Researches have shownthat retaining former customers is cheaper than attracting new ones. Inthe proposed model in this article we first identified important factorscausing customers in insurance industry, to have a specific behavior byusing a k-means clustering algorithm, and then we tried to predict thefuture behavior of them by a logistic regression. Our model accuracy is98%.
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