Competition is increasing in telecoms and a carrier's business can no longer revolve around the network. It must revolve around the customer. Improving network infrastructure is no longer an end in itself, but rather a means to retaining profitable customers and attracting new ones. Defection is large source of revenue loss. We need to understand who is leaving our service, the location of these users, and through which channels they were acquired. With this information, operators can identify which other customers are likely to churn.
This paper builds model of customer defection management and analyzes customer defection with data mining. Effective customer retention strategies are based on a clear understanding of customer defection. Defection rates and their effect on profitability must be measured, comprehended and managed. Data mining offers service providers great opportunities to get closer to customer. Data mining doesn't always require the latest technology, but it does require a magic eye that looks beyond the obvious to find and use the hidden knowledge to drive marketing strategies. This knowledge can help accomplish a number of things, including targeting high value subscribers with customized promotions, acquiring new customers, reducing churn and analyzing distribution channels. Using data mining, operators can gain competitive edge on several fronts
