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Monday, March 17, 2008

Prediction of customer defection

A paper by Buckinx and van den Poel Customer Base Analysis: Partial Defection of Behaviorally-Loyal Clients in a Non-Contractual FMCG Retail Setting tries to explain the probability to defect. The best predictor is frequency which should come as no surprise, as it's just past loyalty. The value of this observation is questionable.

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