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- Winter 2014
- Article
Does Service Bundling Reduce Churn?
By: Jeff Prince and Shane Greenstein
We examine whether bundling in telecommunications services reduces churn using a series of large, independent cross sections of household decisions. To identify the effect of bundling, we construct a pseudo-panel dataset and utilize a linear, dynamic panel-data model,... View Details
Keywords: Communication Technology; Customer Satisfaction; Product Marketing; Telecommunications Industry
Prince, Jeff, and Shane Greenstein. "Does Service Bundling Reduce Churn?" Journal of Economics & Management Strategy 23, no. 4 (Winter 2014): 839–875.
- 2014
- Other Teaching and Training Material
Marketing Reading: Customer Management
By: Sunil Gupta
This Reading on customer management sheds light on how companies should evaluate and manage their customers in order to grow profitably. Customer management allows marketing managers to inform investment decisions by drilling down into each customer's profitability or... View Details
Keywords: Customer Acquisition; Customer Churn; Customer Profitability Analysis; Customer Retention; Firm Value; Organizational Structure
Gupta, Sunil. "Marketing Reading: Customer Management." Core Curriculum Readings Series. Boston: Harvard Business Publishing 8162, 2014.
- August 2014
- Case
Netflix: Designing the Netflix Prize (A)
By: Karim R. Lakhani, Wesley M. Cohen, Kynon Ingram, Tushar Kothalkar, Maxim Kuzemchenko, Santosh Malik, Cynthia Meyn, Greta Friar and Stephanie Healy Pokrywa
In 2006, Reed Hastings, CEO of Netflix, was looking for a way to solve Netflix's customer churn problem. Netflix used Cinematch, its proprietary movie recommendation software, to promote individually determined best-fit movies to customers. Hastings determined that a... View Details
Keywords: Crowdsourcing; Prizes; Digitization; Algorithms; Recommendation Software; Disruption; Transformation; Collaborative Innovation and Invention; Technological Innovation; Knowledge Sharing; Applications and Software; Motion Pictures and Video Industry; Entertainment and Recreation Industry; Technology Industry; United States
Lakhani, Karim R., Wesley M. Cohen, Kynon Ingram, Tushar Kothalkar, Maxim Kuzemchenko, Santosh Malik, Cynthia Meyn, Greta Friar, and Stephanie Healy Pokrywa. "Netflix: Designing the Netflix Prize (A)." Harvard Business School Case 615-015, August 2014.
- 2019
- Working Paper
Managing Churn to Maximize Profits
By: Aurelie Lemmens and Sunil Gupta
Customer defection threatens many industries, prompting companies to deploy targeted, proactive customer retention programs and offers. A conventional approach has been to target customers either based on their predicted churn probability, or their responsiveness to a... View Details
Keywords: Churn Management; Defection Prediction; Loss Function; Stochastic Gradient Boosting; Customer Relationship Management; Consumer Behavior; Profit
Lemmens, Aurelie, and Sunil Gupta. "Managing Churn to Maximize Profits." Harvard Business School Working Paper, No. 14-020, September 2013. (Revised December 2019. Forthcoming at Marketing Science.)
- July–August 2013
- Article
A Joint Model of Usage and Churn in Contractual Settings
By: Eva Ascarza and Bruce G.S. Hardie
As firms become more customer-centric, concepts such as customer equity come to the fore. Any serious attempt to quantify customer equity requires modeling techniques that can provide accurate multiperiod forecasts of customer behavior. Although a number of researchers... View Details
Keywords: Churn; Retention; Contractual Settings; Access Services; Hidden Markov Models; RFM; Latent Variable Models; Customer Value and Value Chain; Consumer Behavior
Ascarza, Eva, and Bruce G.S. Hardie. "A Joint Model of Usage and Churn in Contractual Settings." Marketing Science 32, no. 4 (July–August 2013): 570–590.
- 2012
- Working Paper
Can Implicit Regulation Change Financial Market Behavior? Evidence from Spitzer's Attack on Market Timers
This paper explores a natural experiment setup from the 2003-2004 mutual fund scandals to evaluate the effectiveness of implicit regulation on financial markets behavior. On average, buy-and-hold investors lost 218 basis points annually from 1998 to 2002 to market... View Details
- July 2010 (Revised January 2017)
- Background Note
Marketing Analysis Toolkit: Customer Lifetime Value Analysis (2024)
By: Thomas Steenburgh and Jill Avery
Customers are increasingly being viewed as assets that bring value to the firm. Customer lifetime value is a metric that allows managers to understand the overall value of their customer base and relate it to three customer strategies firms employ: asset... View Details
Keywords: Customer Lifetime Value; Return On Investment; Customer Acquisition; Customer Retention; Customer Churn; "Marketing Analytics"; Marketing; Customer Relationship Management; Customer Focus and Relationships; Customer Value and Value Chain; Management Analysis, Tools, and Techniques; Marketing Strategy; Measurement and Metrics; Strategic Planning; Value
Steenburgh, Thomas, and Jill Avery. "Marketing Analysis Toolkit: Customer Lifetime Value Analysis (2024)." Harvard Business School Background Note 525-017, July 2010. (Revised January 2017.)
- January 2010 (Revised March 2013)
- Case
HubSpot: Lower Churn through Greater CHI
By: F. Asis Martinez Jerez, Thomas Steenburgh, Jill Avery and Lisa Brem
HubSpot, a web marketing startup is under pressure from VCs to rapidly acquire new customers and to maintain a low level of customer churn. In the case, students explore the drivers of customer churn and uncover opportunities to increase customer retention across the... View Details
Keywords: Business Startups; Customer Relationship Management; Customer Satisfaction; Customer Value and Value Chain; Forecasting and Prediction; Consumer Behavior; Happiness; Consulting Industry
Martinez Jerez, F. Asis, Thomas Steenburgh, Jill Avery, and Lisa Brem. "HubSpot: Lower Churn through Greater CHI." Harvard Business School Case 110-052, January 2010. (Revised March 2013.)
- October 2009
- Article
Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship
By: William R. Kerr and Ramana Nanda
We examine entrepreneurship and creative destruction following US banking deregulations using Census Bureau data. US banking reforms brought about exceptional growth in both entrepreneurship and business closures. Most of the closures, however, were the new ventures... View Details
Keywords: Entrepreneurship; Governing Rules, Regulations, and Reforms; Market Entry and Exit; Capital Markets; Banks and Banking; Growth and Development; Disruptive Innovation
Kerr, William R., and Ramana Nanda. "Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship." Journal of Financial Economics 94, no. 1 (October 2009): 124–149.
- 2006
- Working Paper
Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship
By: William R. Kerr and Ramana Nanda
We examine entrepreneurship and creative destruction following US banking deregulations using Census Bureau data. US banking reforms brought about exceptional growth in both entrepreneurship and business closures. The vast majority of closures, however, were the new... View Details
Keywords: Business Exit or Shutdown; Market Entry and Exit; Capital Markets; Entrepreneurship; Outcome or Result; Business Startups; Banks and Banking; Banking Industry; United States
Kerr, William R., and Ramana Nanda. "Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship." Harvard Business School Working Paper, No. 07-033, December 2006. (Revised July 2007, December 2007, October 2008, December 2008.)
- August 2006
- Case
Dreyer's Slow Churned(TM) Ice Cream
By: Noel H. Watson, Steven C. Wheelwright and Brian DeLacey
Examines capacity forecasting and planning in a complex new product introduction scenario. The introduction at Dreyer's, a large dairy snack manufacturer, involves not only a new product but a new manufacturing process and product package, thus implying a significant... View Details
- May 2006
- Article
Detection Defection: Measuring and Understanding the Predictive Accuracy of Customer Churn Models
By: Scott Neslin, Sunil Gupta, Wagner Kamakura, Junxiang Lu and Charlotte Mason
Neslin, Scott, Sunil Gupta, Wagner Kamakura, Junxiang Lu, and Charlotte Mason. "Detection Defection: Measuring and Understanding the Predictive Accuracy of Customer Churn Models." Journal of Marketing Research (JMR) 43, no. 2 (May 2006): 204–211.
- Research Summary
Overview
By: Eva Ascarza
Professor Ascarza’s research primarily focuses on providing researchers and marketers a better understanding of how to manage customer retention so as to reduce churn and increase firm’s profitability. She addresses these issues by building empirical models of customer... View Details