Abstract

The high increase in the number of companies competing in mature markets makes customer retention an important factor for any company to survive. Thus, many methodologies (e.g., data mining and statistics) have been proposed to analyse and study customer retention. The validity of such methods is not yet proved though. This paper tries to fill this gap by empirically comparing two techniques: Customer churn - decision tree and logistic regression models. The paper proves the superiority of decision tree technique and stresses the needs for more advanced methods to churn modelling.

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