ntains the following steps: 1. The company obtains an overall profile of customers that have left in the past. eXcellence in Telecommunications The Telco Churn Handbook 2. Based on this profile information, the company creates a model that predicts which customers will leave in the fu- ture. 3. The company makes special offers to these targeted cus- tomers in an effort to keep them. The blind campaign is the easiest to implement and it can be extremely accurate, but it does have certain drawbacks. Since it is a blind model, it really does very little to help you understand and identify who the churning customers are, what their values are to the company, and whether the company actually wants to keep them. The model accomplishes exactly what its name implies; it blindly predicts what customers will churn. Value-Based Predictive Response Campaigns The value based predictive response model is a variation on the blind response model. This approach not only determines which customers are going to leave, but it also includes an analysis of the value each customer brings to the company. The value based predictive response model is much more useful than the blind model since it allows the marketing department to vary offers according to the customer's value. Segment-Based Predictive Response Campaigns A blind model is a useful tool for a company and a value-based model is even better, but these approaches still fail to provide marketers with information about customers' characteristics and tendencies. What are the customers' likes or dislikes? What is their actual reason for leaving? What would it take to get the customers to stay? Segment-based predictive response models have the ability to answer all of these questions and they allow the marketer to create a powerful, targeted, highly effective, and highly personalized campaign based on a complete understanding of the customer. In the following chapters we will discuss these approaches in much more detail. We will also see how providers all around the world use these 