This paper develops a bi-level decision model and a solution approach to optimizing service features for a company to reduce its customer churn rate. First, a bi-level decision model, together with its modeling approach, are developed to describe the gaming relationship between decision makers in a company (service provider) and its customers. Then, a practical solution approach to reaching solutions for the bi-level-modeled customer churn problem is developed. Finally, experiments and case studies are conducted to illustrate the bi-level decision model and the solution approach.
Gao, Y., Zhang, G., Lu, J. & Ma, J. (2013). A bi-level decision model for customer churn analysis. Computational Intelligence, 30 (3), 583-599.