Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting

Buckinx, Wouter; Poel, Dirk Van den

doi:10.1016/j.ejor.2003.12.010

Cited by 331 publications

(215 citation statements)

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“…In customer retention, the prediction of customer churn or attrition of profitable customers has received most attention, in the insurance , financial (Van den Poel and Lariviere, 2004) and retail industries (Buckinx and van den Poel, 2005). There have been fewer studies on applications in earlier phases of the customer lifecycle, which predict the future response of new prospects to marketing activities in order to facilitate customer targeting.…”

Section: Customer Relationship Management and Data Miningmentioning

confidence: 99%

Forecasting and operational research: a review

Fildes

Νικολόπουλος

Crone

et al. 2008

Journal of the Operational Research Society

226

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From its foundation, operational research (OR) has made many substantial contributions to practical forecasting in organizations. Equally, researchers in other disciplines have influenced forecasting practice. Since the last survey articles in JORS, forecasting has developed as a discipline with its own journals. While the effect of this increased specialization has been a narrowing of the scope of OR's interest in forecasting, research from an OR perspective remains vigorous. OR has been more receptive than other disciplines to the specialist research published in the forecasting journals, capitalizing on some of their key findings. In this paper, we identify the particular topics of OR interest over the past 25 years. After a brief summary of the current research in forecasting methods, we examine those topic areas that have grabbed the attention of OR researchers: computationally intensive methods and applications in operations and marketing. Applications in operations have proved particularly important, including the management of inventories and the effects of sharing forecast information across the supply chain. The second area of application is marketing, including customer relationship management using data mining and computer-intensive methods. The paper concludes by arguing that the unique contribution that OR can continue to make to forecasting is through developing models that link the effectiveness of new forecasting methods to the organizational context in which the models will be applied. The benefits of examining the system rather than its separate components are likely to be substantial.

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Section: Customer Relationship Management and Data Miningmentioning

confidence: 99%

Forecasting and operational research: a review

Fildes

Νικολόπουλος

Crone

et al. 2008

Journal of the Operational Research Society

226

View full text Add to dashboard Cite

show abstract

“…Similarly to Buckinx & Van den Poel (2005), we will focus on partial defection and we consider it as a change in the status of a customer. How do you define this change, is the first question.…”

Section: Defining Churnmentioning

confidence: 99%

“…In order to analyse the benefits of our methodology, in Sections 5 and 6 we present and discuss numerical results using real data provided by a company of commercial retail distribution in Spain. For comparison purposes, we have used the work of Buckinx & Van den Poel (2005), due to the similarities of our environments and data. Conclusions of the paper are shown in Section 7.…”

Section: Aims and Scopementioning

confidence: 99%

“…Apart from these probability models, most definitions of churn use the product activity of a customer and a threshold fixed by a business rule. Following this line, Buckinx & Van den Poel (2005) used real data from a company in the retailing sector in order to propose an analytical definition of churners based basically on the mean frequency of purchases and on the interpurchase time. We will refer to the approach of Buckinx & Van den Poel in more detail later, when we formally define the class of churn definitions.…”

Section: Previous Definitions Of Churn In Non-contractual Settingsmentioning

confidence: 99%

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A methodology based on profitability criteria for defining the partial defection of customers in non-contractual settings

Clemente-Císcar

Matías

Giner‐Bosch

2014

European Journal of Operational Research

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ElsevierClemente Císcar, M.; San Matías Izquierdo, S.; Giner Bosch, V. (2014). A methodology based on profitability criteria for defining the partial defection of customers in noncontractual settings. AbstractThe defection or churn of customers represents an important concern for any company and a central matter of interest in customer base analysis. An additional complication arises in non-contractual settings, where the characteristics that should be observed to saying that a customer has totally or partially defected are not clearly defined. As a matter of fact, different definitions of the churn situation could be used in this context. Focusing on non-contractual settings, in this paper we propose a methodology for evaluating the short-time economic effects that using a certain definition of churn would have on a company. With this aim, we have defined two efficiency measures for the economic results of a marketing campaign implemented against churn, and these measures have been computed using a set of definitions of * Corresponding author. 1 Prof. Susana San Matías sadly passed away in the Summer of 2012 while this paper was under review. We deeply regret the loss of such a brilliant researcher and good person and feel fortunate to have had the opportunity to work with her. Susana will be deeply missed. February 7, 2014 partial defection. Our methodology finds that definition maximizing both efficiency measures and moreover, the monetary amount that the company should invest per customer in the campaign for achieving the optimal solution. This has been modelled as a multiobjective optimization problem that we solved using compromise programming. Numerical results using real data from a Spanish retailing company are presented and discussed in order to Preprint submitted to European Journal of Operational Researchshow the performance and validity of our proposal.

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“…Buckinx and Van den Poel (2005), Hadden et al (2005), Reinartz and Kumar (2003), Song et al (2004), and Van den Poel and Larivière (2004) present literature reviews of customer churn studies. The Appendix 1 presents a review of the literature about customer churn prediction in the TI in contractual settings and continuous time, which is the scope of this study.…”

Section: Because (I) the Retention Of Unprofitable Customermentioning

confidence: 99%