A methodology based on profitability criteria for defining the partial defection of customers in non-contractual settings
We propose a methodology for optimizing the selection of a churn definition in a firm. Each churn definition is evaluated using two economic measures: profit and return. The definition maximizing profit and return is selected by multiobjective programming. The cost that the firm should invest per client to preventing churn is also optimized. A big real database has been used for numerical experiments with satisfactory results.
marketing churn analysis non-contractual retailing cost benefit analysis multiobjective optimization