Segmentation and Lifetime Value Models Using SAS

4The General Retention Model

Contents

4.1 The general retention model

4.2 Introduction to survival analysis

4.3 Product-moment estimates of retention rates

4.4 The discrete-time survival model

4.5 Application: trigger events

4.6 The beta-geometric model

4.7 Chapter summary

     The simple retention model (SRM) discussed in the previous chapter assumes that the retention rate is constant over time, as illustrated in the left side of Figure 4.1. But retention rates are not always constant. For example, companies in many different industries offer products or services at a lower rate for the first few periods. Credit cards commonly offer a low rate of interest for balance transfers during the first few months and then increase the rate. Cable, ...