Statistical modeling methods for determining customer distribution by churn probability within a customer population
First Claim
1. A data mining system comprising;
- a data mart for receiving and storing customer data from a plurality of data sources;
a data manipulation module for calculating derived variable values from the data stored in the data mart and for preparing an input data set including the derived variable values; and
a data mining tool adapted to discover groups of customer having one or more like characteristics based on data in the prepared data set.
3 Assignments
0 Petitions
Accused Products
Abstract
A system and method for managing churn among the customers of a business is provided. The system and method provide for an analysis of the causes of customer churn and identifies customers who are most likely to churn in the future. Identifying likely churners allows appropriate steps to be taken to prevent customers who are likely to chum from actually churning. The system included a dedicated data mart, a population architecture, a data manipulation module, a data mining tool and an end user access module for accessing results and preparing preconfigured reports. The method includes adopting an appropriate definition of churn, analyzing historical customer to identify significant trends and variables, preparing data for data mining, training a prediction model, verifying the results, deploying the model, defining retention targets, and identifying the most responsive targets.
285 Citations
41 Claims
-
1. A data mining system comprising;
-
a data mart for receiving and storing customer data from a plurality of data sources;
a data manipulation module for calculating derived variable values from the data stored in the data mart and for preparing an input data set including the derived variable values; and
a data mining tool adapted to discover groups of customer having one or more like characteristics based on data in the prepared data set. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
-
-
9. A method of identifying groups of customers from within a large customer population having one or more customer, the method comprising:
-
defining a plurality of customer attribute variables wherein a customer attribute variable value quantifies a characteristic of a customer;
receiving customer data;
determining customer attribute variable values for individual customers in the customer population for the plurality of customer attribute variables;
creating a data mining input data set including the determined customer attribute variable values;
providing a data mining tool adapted to discover customer groups based on common attribute variable values; and
analyzing the input data set using the data mining tool. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16, 17, 18)
-
-
19. A method of preparing customer data for data mining comprising:
-
defining a variable which provides a quantifiable measure of a customer characteristic;
obtaining a plurality of individual variable values, each value associated with an individual customer among a plurality of customers in a customer population;
generating a customer distribution based on the individual variable values for the plurality of customers in the customer population;
defining a plurality of customer classes based on the customer distribution;
assigning a customer classification to a customer based on the defined class to which the variable value associated with the customer belongs; and
storing the customer classification as a prepared variable value associated with the customer. - View Dependent Claims (20, 21, 22)
-
-
23. A method of improving the performance of a data mining tool, comprising:
-
receiving raw data from at least one data source;
calculating derived variable values from the raw data; and
including the derived variable values in a data set provided as input to the data mining tool. - View Dependent Claims (24, 25, 26, 27)
-
-
28. A method of maximizing a data mining tool'"'"'s discovery power comprising:
-
receiving raw customer data from a plurality of data sources;
defining a plurality of derived variables wherein derived variable values may be calculated from the raw customer data;
calculating derived variable values for individual customers; and
including the derived variable values in an input data set provided to the data mining tool for analysis. - View Dependent Claims (29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41)
-
Specification