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Research on Customer Churn and Countermeasure of Telecommunication Enterprise Based on Customer Life Circle

Author: XiaMengQing
Tutor: LiuLi
School: Nanjing University of Posts and Telecommunications
Course: Business management
Keywords: Telecommunication Enterprise Customer Churn Customer Life Cycle Data Mining
CLC: F626
Type: Master's thesis
Year: 2012
Downloads: 170
Quote: 1
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Abstract


With the further reform and reshuffle of China’s telecom industry in 2008, the competition of three telecommunication enterprises include China Mobile, China Unicom and China Telecom turns white-hot day by day. At the same time, the three telecom companies also contend intensely for the customer resource. But, the brutal competition cannot bring a stable customer group and high returns; on the contrary, the phenomenon of customer churn of the telecommunication enterprises has become more serious. As everyone knows, customer is the main source of profit for the companies, and the high rate of customer churn will cause huge economic losses. Therefore, it has become the key point for enterprises to maximize the profit about how to improve the customer relationship management and how to maintain the customers. This requires the telecommunication enterprise to identify customers who have loss tendency early, take the appropriate marketing measures according to the stage of the customer relationship development, try to avoid customer relationship degrade phenomenon, and get more customer value by extending the life cycle of this relationship.As how to divide the customer life cycle stage and whether the customer has a loss tendency are more difficult to measure, this dissertation results from previous studies on the basis of a normative analysis and empirical studies of the combination of methods,using data mining technology, the work in the following areas:1. By combing the theoretical literature of related fields at home and abroad, undertake the basic concept of the customer churn management, the definition and the reason of the telecommunication enterprise, and take the customer consumption behavior data of CC Unicom Company as the object, in-depth understanding of telecommunication industry background and theory, establish the customer churn prediction model.2. Put forward how to use the customer behavior and consumption to judge a customer is in which stage of his customer life cycle.3. According to the pre-loss customer list which obtained by the customer churn prediction model, combined with the specific stage of the customer life cycle in which this part of customers are located, put forward the meaningful and reasonable solutions for the customer churn problem.The final part of the dissertation makes a statement and explanation under the direction of further study.

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