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