Title :

Uplift modeling and its implications for B2B customer churn prediction: A segmentation-based modeling approach

Author(s) :

De Caigny, Arno [Auteur]
Lille économie management - UMR 9221 [LEM]
Coussement, Kristof [Auteur]
Lille économie management - UMR 9221 [LEM]
Verbeke, Wouter [Auteur]
Catholic University of Leuven = Katholieke Universiteit Leuven [KU Leuven]
Idbenjra, Khaoula [Auteur]
Phan, Minh [Auteur]
Lille économie management - UMR 9221 [LEM]

Journal title :

Industrial marketing management

Pages :

28-39

Publisher :

Elsevier

Publication date :

2021-11

ISSN :

0019-8501

English keyword(s) :

Customer retention
Churn
modeling
Segmentation-based modeling
Interpretability
Visualization

HAL domain(s) :

Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

Business-to-business (B2B) customer retention relies heavily on analytics and predictive modeling to support decision making. Given this, we introduce uplift modeling as a relevant prescriptive analytics tool. In particular, ...
Show more >Business-to-business (B2B) customer retention relies heavily on analytics and predictive modeling to support decision making. Given this, we introduce uplift modeling as a relevant prescriptive analytics tool. In particular, the uplift logit leaf model offers a segmentation-based algorithm that combines predictive performance with interpretability. Applied to a real-world data set of 6432 customers of a European software provider, the uplift logit leaf model achieves superior performance relative to three other popular uplift models in our study. The accessibility of output gained from the uplift logit leaf model also is showcased with a case study, which reveals relevant managerial insights. This new tool thus delivers novel insights in the form of customized, global, and segment-level visualizations that are especially pertinent to industrial marketing settings. Overall, the findings affirm the viability of uplift modeling for improving decisions related to B2B customer retention management.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL