Policy Determination for retailers in an oligopoly to reduce the churn rate

These days due to a competitive market recognizing customers’ needs and understanding their future reactions is one of the biggest concerns of retailers. Understanding the position of the customers to organization has a vital effect on managing expenses .the goal of this research is to maximize online retailers profit and reducing the churn rate of their customers in an oligopoly through optimization of effective factors on customers churning. In this paper profit of two online retailers according to effective factors on churning rate has been considered.

Keywords:

Customer relationship management (CRM) , customer churn , online retailing , digital marketing , system capability , optimal control , differential game.