Business Analytics for Sales and Marketing Managers: How to Compete in the Information Age

TREATED-RIGHT PROJECT

The treated-right churn category consisted of first-time customers who never paid their bills but bought a subscription to get a free mobile phone and a SIM card. Since these were first-time customers, of course the company had no history on them in the data warehouse and therefore it could not have prevented them from getting their first mobile phone and SIM card. Therefore, they should also be treated based on their actions, meaning that they should be given a subscription and that their subscription should be closed down and sent to the bill collector.

In this context, we made some general rules for how much customers could owe without indicating in any way their willingness or ability to pay their bills. For example, we put limits on how much customers could call for and how many mobile phones customers could obtain before the first bill was paid.

The lead information was the same as for the should-not-have-been-in project, where the focus here was on cases where no bill was paid and there was only one terminated account (see Exhibit 9.9).

Exhibit 9.9 Part of the Lead Information

The lag information for internal use during this project was built on the same data, where we analyzed whether the average loss for this group had declined and if it occurred in fewer cases. The lag information in relation to the overall project was whether there was an overall ...