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Churn in Social Networks

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Abstract

In the past, churn has been identified as an issue across most industry sectors. In its most general sense it refers to the rate of loss of customers from a company’s customer base. There is a simple reason for the attention churn attracts: churning customers mean a loss of revenue. Emerging from business spaces like telecommunications (telcom) and broadcast providers, where churn is a major issue, it is also regarded as a crucial problem in many other businesses, such as online games creators, but also online social networks and discussion sites. Companies aim at identifying the risk of churn in its early stages, as it is usually much cheaper to retain a customer than to try to win him or her back. If this risk can be accurately predicted, marketing departments can target customers efficiently with tailored incentives to prevent them from leaving.

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Notes

  1. 1.

    http://yro.slashdot.org/story/09/08/01/1946208/IBM-Uses-Call-Detail-Records-To-Identify-Friends.

  2. 2.

    http://www.vodacom.com/reports/ar_2009/pdf/full.pdf, http://www.vodafone.com/annual_report09/downloads/VF_Annual_Report_2009.pdf

  3. 3.

    http://insidemr.blogspot.com/2006/06/comparison-of-churn-rates.html

  4. 4.

    http://boards.ie

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Acknowledgements

This work was carried out in part in the CLIQUE Strategic Research Cluster, which is funded by Science Foundation Ireland (SFI) under grant number 08/SRC/I1407, and under partial funding of ETRI and DFG FOR 733 (“QuaP2P”).

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Correspondence to Marcel Karnstedt .

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Karnstedt, M., Hennessy, T., Chan, J., Basuchowdhuri, P., Hayes, C., Strufe, T. (2010). Churn in Social Networks. In: Furht, B. (eds) Handbook of Social Network Technologies and Applications. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-7142-5_9

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