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Author: Melinda Richmond Date: May 6, 2009 Attrition Model and Mean Remaining Lifetime Disclaimer:  Dummy Data
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Executive Summary
[object Object],[object Object],[object Object],[object Object],[object Object],What is Survival Analysis?
Window of Opportunity for Survival Analysis Data Jan   2006 Dec   2006 STUDY PERIOD PRIOR AFTER Account   Opened Attrited Right-Censored Attrited
Life Table All customers have had a tenure (t) = 0 years, 3.1 million.  500 (0.0161%) new customers attrited and 160,000 new customers did not attrite by end of study period,  i.e.,  right-censored.   2.9 million customers have had a tenure (t) = 1 years.  650 (0.0221%) first year customers attrited and 161,000 first year customers did not attrite by end of study period,  i.e.,  right-censored.
Empirical Hazard The increasing part of the curve indicates that customers are more likely to leave  COMPANY ABC , and the decreasing part of the curve indicates that customers are less likely to leave  COMPANY ABC .
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Flexible Hazard Modeling Methodology
Logistic Regression Model
[object Object],[object Object],[object Object],How the Model was Used
Fitted Model for Number of Attritors
Fitted Model for Restricted Mean Residual Lifetime
[object Object],[object Object],[object Object],Future Considerations

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Attrition Model and Remaining Lifetime

  • 1. Author: Melinda Richmond Date: May 6, 2009 Attrition Model and Mean Remaining Lifetime Disclaimer: Dummy Data
  • 2.
  • 3.
  • 4. Window of Opportunity for Survival Analysis Data Jan 2006 Dec 2006 STUDY PERIOD PRIOR AFTER Account Opened Attrited Right-Censored Attrited
  • 5. Life Table All customers have had a tenure (t) = 0 years, 3.1 million. 500 (0.0161%) new customers attrited and 160,000 new customers did not attrite by end of study period, i.e., right-censored. 2.9 million customers have had a tenure (t) = 1 years. 650 (0.0221%) first year customers attrited and 161,000 first year customers did not attrite by end of study period, i.e., right-censored.
  • 6. Empirical Hazard The increasing part of the curve indicates that customers are more likely to leave COMPANY ABC , and the decreasing part of the curve indicates that customers are less likely to leave COMPANY ABC .
  • 7.
  • 9.
  • 10. Fitted Model for Number of Attritors
  • 11. Fitted Model for Restricted Mean Residual Lifetime
  • 12.