English

Causal Customer Churn Analysis with Low-rank Tensor Block Hazard Model

Machine Learning 2024-05-21 v1 Machine Learning Methodology

Abstract

This study introduces an innovative method for analyzing the impact of various interventions on customer churn, using the potential outcomes framework. We present a new causal model, the tensorized latent factor block hazard model, which incorporates tensor completion methods for a principled causal analysis of customer churn. A crucial element of our approach is the formulation of a 1-bit tensor completion for the parameter tensor. This captures hidden customer characteristics and temporal elements from churn records, effectively addressing the binary nature of churn data and its time-monotonic trends. Our model also uniquely categorizes interventions by their similar impacts, enhancing the precision and practicality of implementing customer retention strategies. For computational efficiency, we apply a projected gradient descent algorithm combined with spectral clustering. We lay down the theoretical groundwork for our model, including its non-asymptotic properties. The efficacy and superiority of our model are further validated through comprehensive experiments on both simulated and real-world applications.

Keywords

Cite

@article{arxiv.2405.11377,
  title  = {Causal Customer Churn Analysis with Low-rank Tensor Block Hazard Model},
  author = {Chenyin Gao and Zhiming Zhang and Shu Yang},
  journal= {arXiv preprint arXiv:2405.11377},
  year   = {2024}
}

Comments

Accepted for publication in ICML, 2024

R2 v1 2026-06-28T16:32:02.330Z