Applications of survival analysis to customer management

Abstract

This paper gives an overview of the use of survival analysis techniques for measuring and predicting customer life cycles. The key concepts of these techniques are presented, together with case studies using descriptive and predictive survival analyses. The main applications for customer management are identified. Issues are discussed, including which products and services are most suitable for survival analysis, the distinction between market-wide and brand churn, and the practical questions that commonly arise when using these methods.