CUSTOMER ATTRITION MODEL

Which customers are about to leave? Since it is generally accepted that the cost of retaining an existing customer is far less than acquiring a new one, attrition modeling can deliver substantial value. Attrition models are similar in structure to acquisition models, with the objective (or dependent variable) shifted to focus on retention. The attrition model will score and rank customers based on their likelihood to churn, allowing for targeted retention and up-sell efforts.