The influence of customer churn and acquisition on value dynamics of social neighbourhoods

Przemysław Kazienko, Piotr Bródka, Dymitr Ruta

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

The customers of modern telecommunication service providers implicitly create an interactive social network of individuals, which both depend on and influence each other through various complex social relationships grown on friendship, shared interests, locality, etc. While delivering services on the individual basis, the social network effects exerted from customer-to-customer interactions remain virtually unexplored and unexploited. The focus of the paper is on customer churn and acquisition, where social neighbourhood effects are widely ignored yet may play a vital role in revenue protection. The key assumption made is that a value loss or gain of a churning or new customer extends beyond the revenue stream and directly affect interaction within local neighbourhoods. This influence is evaluated experimentally by direct measurements of the total neighbourhood value of the churning customer taken before and after the churn event.

Original languageBritish English
Title of host publicationVisioning and Engineering the Knowledge Society
Subtitle of host publicationA Web Science Perspective - Second World Summit on the Knowledge Society, WSKS 2009, Proceedings
Pages491-500
Number of pages10
DOIs
StatePublished - 2009
Event2nd World Summit on the Knowledge Society, WSKS 2009 - Chania, Crete, Greece
Duration: 16 Sep 200918 Sep 2009

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume5736 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference2nd World Summit on the Knowledge Society, WSKS 2009
Country/TerritoryGreece
CityChania, Crete
Period16/09/0918/09/09

Keywords

  • Customer churn and acquisition
  • Network dynamics
  • Social neighbourhood
  • Social network analysis
  • Social value
  • Telecommunication social network

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