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Target the ego or target the group: evidence from a randomized experiment in proactive churn management

dc.contributor.authorMatos, Miguel Godinho de
dc.contributor.authorFerreira, Pedro
dc.contributor.authorBelo, Rodrigo
dc.date.accessioned2021-04-15T15:53:27Z
dc.date.available2021-04-15T15:53:27Z
dc.date.issued2018-09-01
dc.description.abstractWe propose a new strategy for proactive churn management that actively uses social network information to help retain consumers. We collaborate with a major telecommunications provider to design, deploy, and analyze the outcomes of a randomized control trial at the household level to evaluate the effectiveness of this strategy. A random subset of likely churners were selected to be called by the firm. We also randomly selected whether their friends would be called. We find that listing likely churners to be called reduced their propensity to churn by 1.9 percentage points from a baseline of 17.2%. When their friends were also listed to be called, their likelihood of churn reduced an additional 1.3 percentage points. The client lifetime value of likely churners increased 2.1% with traditional proactive churn management, and this statistic becomes 6.4% when their friends were also listed to be called by the firm. We show that, in our setting, likely churners receive a signal from their friends that reduces churn among the former. We also discuss how this signal may trigger mechanisms akin to both financial comparisons and conformity that may explain our findings.pt_PT
dc.description.versioninfo:eu-repo/semantics/acceptedVersionpt_PT
dc.identifier.doi10.1287/mksc.2018.1099pt_PT
dc.identifier.eid85060218311
dc.identifier.issn0732-2399
dc.identifier.urihttp://hdl.handle.net/10400.14/32636
dc.identifier.wos000449361400007
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.subjectChurn managementpt_PT
dc.subjectClient lifetime valuept_PT
dc.subjectRandomized experimentpt_PT
dc.subjectSocial networkspt_PT
dc.titleTarget the ego or target the group: evidence from a randomized experiment in proactive churn managementpt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage811pt_PT
oaire.citation.issue5pt_PT
oaire.citation.startPage793pt_PT
oaire.citation.titleMarketing Sciencept_PT
oaire.citation.volume37pt_PT
person.familyNameGodinho de Matos
person.familyNameBelo
person.givenNameMiguel
person.givenNameRodrigo
person.identifier.ciencia-id4217-C942-9E6F
person.identifier.ciencia-idA014-A8EB-F8FB
person.identifier.orcid0000-0002-6333-2753
person.identifier.orcid0000-0001-6839-5086
person.identifier.ridM-3545-2013
person.identifier.ridI-6604-2015
person.identifier.scopus-author-id56757598200
rcaap.rightsopenAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublicationc9055da8-5ee5-422f-914b-8f5363ea3db9
relation.isAuthorOfPublication2ce0a263-4dfe-4de6-af9b-e23cd501e675
relation.isAuthorOfPublication.latestForDiscovery2ce0a263-4dfe-4de6-af9b-e23cd501e675

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