An analysis of customer retention using data mining

Abstract: This thesis aimed to answer the question whether the use of third-party applications, in addition to the original product, have an impact on customer retention at a digital rights management company. The research originated in the null hypothesis that there is no relationship between the dependent variable customer retention and the independent variable usage of third-party applications. To evaluate whether the hypothesis can be rejected or not, the relationship between the two variables was analyzed using logistic regression. The result showed that there was a positive impact, for the chosen set of included variables. Consequently, the conclusion was that there could be a potential positive correlation between the two variables and the null hypothesis could, therefore, be rejected.