Corporate credit granting is a key commercial activity of financial institutions nowadays. A critical first step in the credit granting process usually involves a careful financial analysis of the creditworthiness of the potential client. Wrong decisions result either in foregoing valuable...

Undoubtedly, Customer Relationship Management (CRM) has gained its importance through the statement that acquiring a new customer is several times more costly than retaining and selling additional products to existing customers. Consequently, marketing practitioners are currently often focusing...

Several supervised learning algorithms are suited to classify instances into a multiclass value space. MultiNomial Logit (MNL) is recognized as a robust classifier and is commonly applied within the CRM (Customer Relationship Management) domain. Unfortunately, to date, it is unable to handle...

Since it is generally recognized that models evaluated on the data that was used for constructing them are overly optimistic, in predictive modeling practice, the assessment of a model’s predictive performance frequently relies on a one-shot train-and-test split between observations used for...

In this research we use the framework of market-basket analysis and techniques from modern multivariate time-series analysis to measure and explain the dynamic impact of a price promotion on the sales of a complementary product. The large scale of this research enables us to derive empirical...

In an era of strong customer relationship management (CRM) emphasis, firms strive to build valuable relationships with their existing customer base. In this study we attempt to better understand three important measures of customer outcome: next buy, partial defection and customers’...

In this study, we propose a customer-oriented conceptual model of segmentation variables for mail-order repeat buying behavior. We investigate (1) from a theoretical perspective what customer-related variables should be included in response models for modeling repeat purchasing, and (2)...

Although most data mining (DM) models are complex and general in nature, the implementation of such models in specific environments us often subject to practical constraints (e.g. budget constraints) or thresholds (e.g. only mail to customers with an expected profit higher than the investment...

Firms increasingly view each contact with their customers as an opportunity that needs to be managed. The primary purpose of this article is to gain a better understanding of the customers’ post-complaint period. Specific focus is placed on the impact of effective complaint handling on actual...

This paper studies the topic of customer attrition in the context of a European financial services company. More specifically, we investigate predictors of churn incidence as part of customer relationship management (CRM). We contribute to the existing literature: (1) by combining several...