Mohsen Asgari; Mohammadreza Taghva; Mohammad Taghi Taghavifard
Abstract
Banks are endeavoring to gain more funds in a highly competitive environment. Given the higher costs of attracting new customers than retaining existing ones, most banks focus on maintaining their existing customers. Therefore, it is quite important for the banks to predict the customer churn in advance. ...
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Banks are endeavoring to gain more funds in a highly competitive environment. Given the higher costs of attracting new customers than retaining existing ones, most banks focus on maintaining their existing customers. Therefore, it is quite important for the banks to predict the customer churn in advance. In almost all related research works in banking, customers are divided into two types of static categories: “churners” and “loyal” customers. However, due to the nature of banking particularly in Iran, it is necessary to define churn in a dynamic manner in a variety of circumstances. In this study, the concept of state chain is introduced, which identifies changes in customers’ partial churn status over time. Using the sequence of chains and a combination of hierarchical clustering techniques as well as support vector machine, a model was developed to predict partial churn of bank customers. To construct a practical sample and to evaluate the prediction accuracy, 5 years of real European bank customers’ data as well as 3 years of customers’ data from three different Iranian banks were used. The results indicate a high level of prediction accuracy for the model in all 4 banks, particularly when longer sequences of states are used.
Mohammad Taghi Taghavifard; Azita Dadvand; Mojtaba Aghaei
Abstract
Banks are service organizations having close relationship with their customer by providing them financial services. Since customers are the most valuable sources for any bank, there is no doubt that the profitability of these financial organizations is highly related to the analysis of ...
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Banks are service organizations having close relationship with their customer by providing them financial services. Since customers are the most valuable sources for any bank, there is no doubt that the profitability of these financial organizations is highly related to the analysis of issues related to the customer satisfaction. Banks are constantly paying special attention to service quality as the most important principle of payments. Queue length and waiting time are two important factors that affect on the customer's perception of service quality. Among the various useful methods for evaluating and analyzing systems in steady states and also considering probabilistic date, it is shown that simulation has a high capability in modeling and evaluating such circumstances. Simulation is a suitable tool for the analysis of any queuing systems. The main aim of this paper is to simulating service processes of the bank branches and offer scenarios to improve existing processes toward customer satisfaction. To do this, after the identification of different service processes in the bank, the bottlenecks are identified and scenarios are offered to overcome these bottlenecks. The results show that proposed method can highly increase the speed and efficiency of services provided by the bank and achieve customer satisfaction.
