This paper develops a bi-level decision model and a solution approach to optimizing service features for a
company to reduce its customer churn rate. First, a bi-level decision model, together with its modeling approach,
are developed to describe the gaming relationship between decision makers in a company (service provider) and
its customers. Then, a practical solution approach to reaching solutions for the bi-level-modeled customer churn
problem is developed. Finally, experiments and case studies are conducted to illustrate the bi-level decision model
and the solution approach.