Customer Churn Analysis Among Product Groups and Packages in Telecommunication Sector

Abstract

This study determines the customer churn among the product groups and packages; specifies the major factors that cause the churn and also makes some suggestions by analysing a telecommunication firm's data. Discrete choice modelling (multinomial or conditional logit) which has not been used in the previous studies in this area is applied as a modelling technique. In the modelling phase, package features, demographic characteristic and usage information of customers are chosen as variables. As a result, significant demographic characteristics such as income level, household number, dwell type and monthly call duration, and their relative effects are determined. Also, package fee is observed as the most descriptive package feature in the model. By using these variables, package selection probabilities are determined, and suggestions are made for the company and the telecommunication sector.