METHODS, SYSTEMS AND APPARATUS TO IMPROVE THE EFFICIENCY OF CALCULATING A CUSTOMER RETENTION RATE
Methods, systems and apparatus to improve the efficiency of calculating a customer retention rate are disclosed herein. An example apparatus described herein that may be implemented to calculate a customer retention rate includes a retention rate model generator to generate a baseline retention rate model based on survivability data associated with an observed duration of interest, a shifted-beta-geometric distribution generator to generate a shifted-beta-geometric distribution model based on the survivability data, a model modifier to modify the baseline retention rate model based on the shifted-beta-geometric distribution model to create a modified retention rate model, and a model comparator to reduce a computational burden of calculating the customer retention rate by merging the modified retention rate model with the baseline retention rate model to generate a merged shifted-beta-geometric model, the merged shifted-beta-geometric model including a shifted-beta-geometric model parameters to determine the customer retention rate.
1 . An apparatus to calculate a customer retention rate, the apparatus comprising:
a retention rate model generator to generate a baseline retention rate model based on survivability data associated with an observed duration of interest;
a shifted-beta-geometric distribution generator to generate a shifted-beta-geometric distribution model based on the survivability data;
a model modifier to modify the baseline retention rate model based on the shifted-beta-geometric distribution model to create a modified retention rate model; and
a model comparator to reduce a computational burden of calculating the customer retention rate by merging the modified retention rate model with the baseline retention rate model to generate a merged shifted-beta-geometric model, the merged shifted-beta-geometric model including first and second shifted-beta-geometric model parameters to determine the customer retention rate.
2 . The apparatus as defined in claim 1 , further including a customer data storage to store customer data, including survivability data.
3 . The apparatus as defined in claim 2 , further including a survivability data retriever to retrieve customer survivability data from the customer data storage.
4 . The apparatus as defined in claim 1 , further including a parameter estimator to estimate the shifted-beta-geometric model parameters based on the merged shifted-beta-geometric model.
5 . The apparatus as defined in claim 1 , further including a retention rate estimator to calculate the retention rate based on the shifted-beta-geometric model parameters and the merged shifted-beta-geometric model.
6 . The apparatus as defined in claim 1 , wherein the model comparator further includes:
a parameter solver to solve the shifted-beta-geometric model for one of the shifted-beta-geometric model parameters;
a variable definer to define a survivability variable related to the survivability of a customer based on the merged shifted-beta-geometric model;
a simplifier to substitute the survivability variable into the shifted-beta-geometric model to simplify the shifted-beta-geometric model;
a linear relationship definer to establish a linear relationship between a first one of the shifted-beta-geometric model parameters and a second one of the shifted-beta-geometric model parameters;
a matrix definer to define a matrix based on the linear relationship between the first and second shifted-beta-geometric model parameters; and
an equation generator to generate a system of equations based on the matrix to be implemented to determine the customer retention rate.
7 . The apparatus as defined in claim 6 , wherein the system of equations is derived from the matrix.
8 . A computer-implemented method to calculate a customer retention rate, the method comprising:
generating, by executing an instruction with a processor, a baseline retention rate model based on survivability data associated with an observed duration of interest;
generating, by executing an instruction with the processor, a shifted-beta-geometric distribution model based on the survivability data;
modifying, by executing an instruction with the processor, the baseline retention rate model based on the shifted-beta-geometric distribution model to create a modified retention rate model; and
reducing a computational burden of calculating the customer retention rate by merging, by executing an instruction with the processor, the modified retention rate model with the baseline retention rate model to generate a merged shifted-beta-geometric model, the merged shifted-beta-geometric model including a shifted-beta-geometric model parameters to determine the customer retention rate.
9 . The method as defined in claim 8 , further including retrieving customer survivability data from a customer data storage.
10 . The method as defined in claim 9 , further including estimating the shifted-beta-geometric model parameters based on the merged shifted-beta-geometric model.
11 . The method as defined in claim 8 , further including calculating the retention rate based on the shifted-beta-geometric model parameters and the merged shifted-beta-geometric model.
12 . The method as defined in claim 8 , further including defining a survivability variable related to the survivability of a customer based on the merged shifted-beta-geometric model.
13 . The method as defined in claim 12 , further comprising establishing a linear relationship between a first one of the shifted-beta-geometric model parameters and a second one of the shifted-beta-geometric model parameters.
14 . The method as defined in claim 13 , further comprising defining a matrix based on the linear relationship between the first and second shifted-beta-geometric model parameters.
15 . The method as defined in claim 14 , further comprising generating a system of equations to be implemented to determine the customer retention rate.
16 . A tangible machine readable storage medium comprising instructions that, when executed, cause a machine to at least:
generate a baseline retention rate model based on survivability data associated with an observed duration of interest;
generate a shifted-beta-geometric distribution model based on the survivability data;
modify the baseline retention rate model based on the shifted-beta-geometric distribution model to create a modified retention rate model; and
reduce a computational burden of calculating a customer retention rate by merging the modified retention rate model with the baseline retention rate model to generate a merged shifted-beta-geometric model, the merged shifted-beta-geometric model including a shifted-beta-geometric model parameters to determine the customer retention rate.
17 . The tangible machine readable storage medium of claim 16 , wherein the instructions, when executed, cause the machine to retrieve customer survivability data from a customer data storage.
18 . The tangible machine readable storage medium of claim 17 , wherein the instructions, when executed, cause the machine to estimate the shifted-beta-geometric model parameters based on the merged shifted-beta-geometric model.
19 . The tangible machine readable storage medium of claim 16 , wherein the instructions, when executed, cause the machine to calculate the retention rate based on the shifted-beta-geometric model parameters and the merged shifted-beta-geometric model.
20 . The tangible machine readable storage medium of claim 16 , wherein the instructions, when executed, cause the machine to generate a system of equations to be implemented to determine the customer retention rate.