Predicting customer churn in mobile industry using data mining technology

2017 ◽  
Vol 117 (1) ◽  
pp. 90-109 ◽  
Author(s):  
Eui-Bang Lee ◽  
Jinwha Kim ◽  
Sang-Gun Lee
Keyword(s):  
Data Mining ◽  
Decision Tree ◽  
Online News ◽  
Partial Least Square ◽  
Churn Prediction ◽  
Mining Technology ◽  
Content Type ◽  
Customer Churn ◽  
Mobile Industry ◽  
Using Data

Purpose The purpose of this paper is to identify the influence of the frequency of word exposure on online news based on the availability heuristic concept. So that this is different from most churn prediction studies that focus on subscriber data. Design/methodology/approach This study examined the churn prediction through words presented the previous studies and additionally identified words what churn generate using data mining technology in combination with logistic regression, decision tree graphing, neural network models, and a partial least square (PLS) model. Findings This study found prediction rates similar to those delivered by subscriber data-based analyses. In addition, because previous studies do not clearly suggest the effects of the factors, this study uses decision tree graphing and PLS modeling to identify which words deliver positive or negative influences. Originality/value These findings imply an expansion of churn prediction, advertising effect, and various psychological studies. It also proposes concrete ideas to advance the competitive advantage of companies, which not only helps corporate development, but also improves industry-wide efficiency.

scholarly journals A Critical Examination of Different Models for Customer Churn Prediction using Data Mining

2019 ◽  
Vol 8 (6S3) ◽  
pp. 850-854
Keyword(s):  
Machine Learning ◽  
Data Mining ◽  
Prediction Models ◽  
Machine Learning Techniques ◽  
Critical Examination ◽  
Churn Prediction ◽  
Customer Churn ◽  
Learning Techniques ◽  
Customer Churn Prediction ◽  
Using Data

Due to competition between online retailers, the need for providing improved customer service has grown rapidly. In addition to reduction in sales due to loss of customers, more investments are needed to be done to attract new customers. Companies now are working continuously to improve their perceived quality by way of giving timely and quality service to their customers. Customer churn has become one of the primary challenges that many firms are facing nowadays. Several churn prediction models and techniques are proposed previously in literature to predict customer churn in areas such as finance, telecom, banking etc. Researchers are also working on customer churn prediction in e-commerce using data mining and machine learning techniques. In this paper, a comprehensive review of various models to predict customer churn in e-commerce data mining and machine learning techniques has been presented. A critical review of recent research papers in the field of customer churn prediction in e-commerce using data mining has been done. Thereafter, important inferences and research gaps after studying the literature are presented. Finally, the research significance and concluding remarks are described in the end.

scholarly journals PREDICCIÓN DE FUGA DE CLIENTES EN UNA EMPRESA DE DISTRIBUCIÓN DE GAS NATURAL MEDIANTE EL USO DE MINERÍA DE DATOS

2020 ◽  
Vol 24 (106) ◽  
pp. 79-87
Author(s):  
Fredy Humberto Troncoso Espinosa ◽  
Javiera Valentina Ruiz Tapia
Keyword(s):  
Machine Learning ◽  
Data Mining ◽  
Feature Selection ◽  
Knowledge Discovery ◽  
Data Science ◽  
Machine Learning Techniques ◽  
Support Vector ◽  
Churn Prediction ◽  
Customer Churn ◽  
Using Data

La fuga de clientes es un problema relevante al que enfrentan las empresas de servicios y que les puede generar pérdidas económicas significativas. Identificar los elementos que llevan a un cliente a dejar de consumir un servicio es una tarea compleja, sin embargo, mediante su comportamiento es posible estimar una probabilidad de fuga asociada a cada uno de ellos. Esta investigación aplica minería de datos para la predicción de la fuga de clientes en una empresa de distribución de gas natural, mediante dos técnicas de machine learning: redes neuronales y support vector machine. Los resultados muestran que mediante la aplicación de estas técnicas es posible identificar los clientes con mayor probabilidad de fuga para tomar sobre estas acciones de retenciónoportunas y focalizadas, minimizando los costos asociados al error en la identificación de estos clientes. Palabras Clave: fuga de clientes, minería de datos, machine learning, distribución de gas natural. Referencias [1]J. Miranda, P. Rey y R. Weber, «Predicción de Fugas de Clientes para una Institución Financiera Mediante Support Vector Machines,» Revista Ingeniería de Sistemas Volumen XIX, pp. 49-68, 2005. [2]P. A. Pérez V., «Modelo de predicción de fuga de clientes de telefonía movil post pago,» Universidad de Chile, Santiago, Chile, 2014. [3]Gas Sur S.A., «https://www.gassur.cl/Quienes-Somos/,» [En línea]. [4]J. Xiao, X. Jiang, C. He y G. Teng, «Churn prediction in customer relationship management via GMDH-based multiple classifiers ensemble,» IEEE IntelligentSystems, vol. 31, nº 2, pp. 37-44, 2016. [5]A. M. Almana, M. S. Aksoy y R. Alzahrani, «A survey on data mining techniques in customer churn analysis for telecom industry,» International Journal of Engineering Research and Applications, vol. 4, nº 5, pp. 165-171, 2014. [6]A. Jelvez, M. Moreno, V. Ovalle, C. Torres y F. Troncoso, «Modelo predictivo de fuga de clientes utilizando mineríaa de datos para una empresa de telecomunicaciones en chile,» Universidad, Ciencia y Tecnología, vol. 18, nº 72, pp. 100-109, 2014. [7]D. Anil Kumar y V. Ravi, «Predicting credit card customer churn in banks using data mining,» International Journal of Data Analysis Techniques and Strategies, vol. 1, nº 1, pp. 4-28, 2008. [8]E. Aydoğan, C. Gencer y S. Akbulut, «Churn analysis and customer segmentation of a cosmetics brand using data mining techniques,» Journal of Engineeringand Natural Sciences, vol. 26, nº 1, 2008. [9]G. Dror, D. Pelleg, O. Rokhlenko y I. Szpektor, «Churn prediction in new users of Yahoo! answers,» de Proceedings of the 21st International Conference onWorld Wide Web, 2012. [10]T. Vafeiadis, K. Diamantaras, G. Sarigiannidis y K. Chatzisavvas, «A comparison of machine learning techniques for customer churn prediction,» SimulationModelling Practice and Theory, vol. 55, pp. 1-9, 2015. [11]Y. Xie, X. Li, E. Ngai y W. Ying, «Customer churn prediction using improved balanced random forests,» Expert Systems with Applications, vol. 36, nº 3, pp.5445-5449, 2009. [12]U. Fayyad, G. Piatetsky-Shapiro y P. Smyth, «Knowledge Discovery and Data Mining: Towards a Unifying Framework,» de KDD-96 Proceedings, 1996. [13]R. Brachman y T. Anand, «The process of knowledge discovery in databases,» de Advances in knowledge discovery and data mining, 1996. [14]K. Lakshminarayan, S. Harp, R. Goldman y T. Samad, «Imputation of Missing Data Using Machine Learning Techniques,» de KDD, 1996. [15]B. Nguyen , J. L. Rivero y C. Morell, «Aprendizaje supervisado de funciones de distancia: estado del arte,» Revista Cubana de Ciencias Informáticas, vol. 9, nº 2, pp. 14-28, 2015. [16]I. Monedero, F. Biscarri, J. Guerrero, M. Peña, M. Roldán y C. León, «Detection of water meter under-registration using statistical algorithms,» Journal of Water Resources Planning and Management, vol. 142, nº 1, p. 04015036, 2016. [17]I. Guyon y A. Elisseeff, «An introduction to variable and feature selection,» Journal of machine learning research, vol. 3, nº Mar, pp. 1157-1182, 2003. [18]K. Polat y S. Güneş, «A new feature selection method on classification of medical datasets: Kernel F-score feature selection,» Expert Systems with Applications, vol. 36, nº 7, pp. 10367-10373, 2009. [19]D. J. Matich, «Redes Neuronales. Conceptos Básicos y Aplicaciones,» de Cátedra: Informática Aplicada ala Ingeniería de Procesos- Orientación I, 2001. [20]E. Acevedo M., A. Serna A. y E. Serna M., «Principios y Características de las Redes Neuronales Artificiales, » de Desarrollo e Innovación en Ingeniería, Medellín, Editorial Instituto Antioqueño de Investigación, 2017, pp. Capítulo 10, 173-182. [21]M. Hofmann y R. Klinkenberg, RapidMiner: Data mining use cases and business analytics applications, CRC Press, 2016. [22]R. Pupale, «Towards Data Science,» 2018. [En línea]. Disponible: https://towardsdatascience.com/https-medium-com-pupalerushikesh-svm-f4b42800e989. [23]F. H. Troncoso Espinosa, «Prediction of recidivismin thefts and burglaries using machine learning,» Indian Journal of Science and Technology, vol. 13, nº 6, pp. 696-711, 2020. [24]L. Tashman, «Out-of-sample tests of forecasting accuracy: an analysis and review,» International journal of forecasting, vol. 16, nº 4, pp. 437-450, 2000. [25]S. Varma y R. Simon, «Bias in error estimation when using cross-validation for model selection,» BMC bioinformatics, vol. 7, nº 1, p. 91, 2006. [26]N. V. Chawla, K. W. Bowyer, L. O. Hall y W. Kegelmeyer, «SMOTE: Synthetic Minority Over-sampling Technique,» Journal of Artificial Inteligence Research16, pp. 321-357, 2002. [27]M. Sokolova y G. Lapalme, «A systematic analysis of performance measures for classification tasks,» Information processing & management, vol. 45, nº 4, pp. 427-437, 2009. [28]S. Narkhede, «Understanding AUC-ROC Curve,» Towards Data Science, vol. 26, 2018. [29]R. Westermann y W. Hager, «Error Probabilities in Educational and Psychological Research,» Journal of Educational Statistics, Vol 11, No 2, pp. 117-146, 1986.  

Dimensionality and data reduction in telecom churn prediction

Kybernetes ◽  
2014 ◽  
Vol 43 (5) ◽  
pp. 737-749 ◽  
Author(s):  
Wei-Chao Lin ◽  
Chih-Fong Tsai ◽  
Shih-Wen Ke
Keyword(s):  
Data Mining ◽  
Feature Selection ◽  
Prediction Model ◽  
Data Reduction ◽  
Data Preprocessing ◽  
Churn Prediction ◽  
Important Data ◽  
Data Set ◽  
Content Type ◽  
Customer Churn

Purpose – Churn prediction is a very important task for successful customer relationship management. In general, churn prediction can be achieved by many data mining techniques. However, during data mining, dimensionality reduction (or feature selection) and data reduction are the two important data preprocessing steps. In particular, the aims of feature selection and data reduction are to filter out irrelevant features and noisy data samples, respectively. The purpose of this paper, performing these data preprocessing tasks, is to make the mining algorithm produce good quality mining results. Design/methodology/approach – Based on a real telecom customer churn data set, seven different preprocessed data sets based on performing feature selection and data reduction by different priorities are used to train the artificial neural network as the churn prediction model. Findings – The results show that performing data reduction first by self-organizing maps and feature selection second by principal component analysis can allow the prediction model to provide the highest prediction accuracy. In addition, this priority allows the prediction model for more efficient learning since 66 and 62 percent of the original features and data samples are reduced, respectively. Originality/value – The contribution of this paper is to understand the better procedure of performing the two important data preprocessing steps for telecom churn prediction.

scholarly journals Customer Churn Prediction in Telecommunication Industry Using Data Mining Methods

2020 ◽  
Vol 8 (1) ◽  
pp. 1-8
Author(s):  
Homa Meghyasi ◽  
Abas Rad
Keyword(s):  
Neural Network ◽  
Data Mining ◽  
Genetic Algorithm ◽  
Churn Prediction ◽  
Modular Neural Network ◽  
Customer Churn ◽  
Important Challenge ◽  
Accuracy Result ◽  
Customer Churn Prediction ◽  
Using Data

At present, in competitive space between companies and organizations, customers churn is their most important challenge. When a customer becomes churn, organizations lose one of their most important assets, which can lead to financial losses and even bankruptcy.  Customer churn prediction using data mining techniques can alleviate these problems to some extent.  The aim of the present study is to provide a hybrid method based on Genetic Algorithm and Modular Neural Network to customer churn prediction in telecommunication industries and use Irancell data as a sample. The accuracy result of this study which is 95.5% get the highest accuracy rank in comparisons with the result of other methods, which shows using modular neural network with two modules of feedforward neural network and also using genetic algorithm to obtain optimal structure for modules of the neural network are the most important indicators of this method to each the highest accuracy result among the rest of methods.

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