Research on Behavior of Churn Customers in the Restaurant Chain

Student: Barsukova Viktoriia

Supervisor: Agata Maximovna Lozinskaia

Faculty: Faculty of Economics, Management, and Business Informatics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2019

The current paper is devoted to the research of the behavior of the churn customers in a restaurant chain through the data from its loyalty program. It is important for companies to pay more attention to the segment of churn customers as to when customers churn they take away profitability that could potentially bring to the firm. We use linear regression, probit model and Heckman model in order to estimate churn customers’ behavior. Analysis performed on the customer data after conducting an experiment within which customers were offered extra points. It was found that churn customers tend to respond to presenting them extra points, but the average sum of bills of those customers who were not given points is higher.

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