Abstract

For telecom industries facing customer and market changes due to rapid developments, near saturation, and intense competition, avoiding churn is critical. Most churn management studies attempt to locate a list of potentially lost customers from existing customer data, for use in subsequent customer retention activities. However, the effectiveness of a telecom company’s churn management is determined by whether it decreases the churn rate and successfully retains lost customers. To help telecom industries achieve effective churn management, this study utilizes fuzzy correlation analysis to extract the key factors of telecom churn management processes. Using a dataset of a telecom company in Taiwan, a data mining-based churn management model was constructed in previous work. The key factors identified by the data mining-based churn management model are confirmed by fuzzy correlation analysis.

Key words: Telecom industry, churn management, fuzzy correlation analysis, data mining, customer retention strategy.