A Proposed Churn Window for Non-Contractual Purchases


Ganeson, Sunther and Lew, Sook Ling and Abdul Razak, Siti Fatimah (2022) A Proposed Churn Window for Non-Contractual Purchases. Journal of System and Management Sciences, 12 (4). pp. 57-68. ISSN 1816-6075, 1818-0523

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The identification of retainable online non-contractual customers is pertinent for the operations and growth of non-contractual online businesses, since there are no obligations for customers to be loyal to a particular online business. This research paper, therefore, aimed at proposing a churn window for noncontractual purchases. Firstly, a prediction model based on the average customer historical buying pattern was presented. Secondly, based on customers’ purchase history trends, a new churn window was proposed. Generally, customers have their own unique churn window based on their purchasing behaviour. This is different from the traditional definition of churn window, whereby a defined churn window is applied across customers regardless of their individual purchasing history. Results revealed that the proposed churn window model has better accuracy compared with the traditionally defined window, which is generically applied to all customers. This leads to the conclusion that the proposed prediction model and the churn window model can be useful to support marketing strategies and activities of non-contractual online businesses.

Item Type: Article
Uncontrolled Keywords: Non-contractual, online customer, churn prediction, churn window
Subjects: Q Science > QA Mathematics > QA71-90 Instruments and machines > QA75.5-76.95 Electronic computers. Computer science > QA76.75-76.765 Computer software
Divisions: Faculty of Information Science and Technology (FIST)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 07 Oct 2022 08:17
Last Modified: 07 Oct 2022 08:17
URII: http://shdl.mmu.edu.my/id/eprint/10524


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