Airline Reward points to reduce customer churn


Acquiring a new customer is extremely costly in comparison to retaining an existing one. Companies are struggling to retain customers because of cut-throat competition among business rivals in acquiring new customers. In the light of the same, companies have started the loyalty program of accruing points & redeeming the same for gifts.

Build prediction model based on various demographic details of customers alongside other domain specific variables to predict the customer churn. And also, build association rules for identifying the benefit options by establishing tuples of reward points & products

Benefits for the company

Increased customer satisfaction because of personalized marketing
– Improved sales through effective recommendation of products/services based on previous purchase behavior of customers
– Increased customer retention rate by predicting customer churn
– Increased profits from repeat business by existing customers



Type of expertise/ AI domain

Cluster Analysis/Segmentation, Recommendation System, Prediction Model

Internal data required

Customer Behaviour, demographics, user-item utility matrix, domain specific variables

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