The Effect of Socially-Based Proactive Churn Management Published at Marketing Science

My paper with Miguel Matos and Rodrigo Belo on the effect of socially-based proactive churn management has been accepted for publication at Marketing Science. In this paper, and using results from a network-based large scale randomized field experiment, we show that listing the friends of likely churners to contact, in addition to the likely churners, reduces churn and increases customer lifetime value compared to traditional proactive churn management in which only the latter are usually listed to contact. We also show how conformity and on-price must be mechanisms that are likely at play in our setting that explain our findings.

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