Title: Understanding Service Retention Within and Across Cohorts Using Limited Information
Abstract:Abstract Service churn and retention rates remain central as constructs in marketing activities, such as valuation of service subscribers and resource allocation. Although extant approaches have been ...Abstract Service churn and retention rates remain central as constructs in marketing activities, such as valuation of service subscribers and resource allocation. Although extant approaches have been proposed to relate service churn to external factors, such as reported satisfaction, marketing-mix activities, and so on, managers often face situations in which the only information available is the duration for which subscribers have had service. In such cases, can they forecast service churn and understand the contributing factors, which may allow for subsequent intervention? The authors propose a framework to examine factors that may underlie service retention in a contractual setting. Specifically, they use a model of retention that accounts for (1) duration dependence, (2) promotional effects, (3) subscriber heterogeneity, (4) cross-cohort effects, and (5) calendar-time effects (e.g., seasonality).Then, they apply the framework to subscription databases of seven services offered by a telecommunications ...Read More
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 74
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