Designing CRM retention strategies using Deep Learning Customer Churn Prediction model in a subscription-based company

Petr, Jan ; Bobula, Martin

4. term

Economics and Business Administration (International Marketing), Master

2019

2019-06-06

Creating, maintaining and retaining relationships with a company’s customer base is one of the crucial business and marketing tasks in heavily competitive markets such as telecommunications or subscription-based models. The researchers therefore take this thesis as an opportunity to thoroughly explore the topic of Customer Relationship Management, more specifically Customer Churn and Retention Strategies. The topic is explored via systematic literature review from different angles counting business context, degree of CRM individualization, segmentation, selection of key customers, enabling process, employee engagement and performance assessment. Additionally, the contemporary tool of Deep Learning is explored and utilized in order to predict customer churn and yield supplementary marketing insights. As a result, a conceptual framework compositing the existing literature on the topic of CRM Retention strategies is created and later synthesized with the outcome of the Deep Learning Customer Churn Prediction model. This approach allows the researchers to conclude to what extent can the latter enhance the former. The results indicate that the utilization of Deep Learning in predicting customer churn represents an effective way to cope with customer defection. Not only is this approach capable of accurately predicting which customers are going to churn, it can also provide understanding of churn predictors which in combination with churn reasons can yield valuable marketing insights. These results can be supplemented by additional information such as customer lifetime value or proneness to marketing interventions. However, such a model ought not to standalone in the process of the whole CRM Retention strategies development as multitude of other factors such as business context or retention goals come into picture.

customer relationship management ; Deep Learning ; customer churn ; retention strategies

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