The Explanation of Support Vector Machine in Customer Churn Prediction

Author(s):  
Yi Li ◽  
Guo-en Xia
2017 ◽  
Vol 7 (1.1) ◽  
pp. 12
Author(s):  
T. Kamalakannan ◽  
P. Mayilvaghnan

Decision making system in telecommunication industries plays a more important role where it is required to find customer churn. Customer churn prediction requires finding out and analyzing the information about the business data intelligence techniques which can be done efficiently by adapting the business intelligence techniques. Business intelligence provides tools to predict and analyze the historical, current and predictive views of business operations. However, this would be more complex task with high volume of data which are gathered from million of telephone users for the time being. It can be handled effectively by introducing the data mining techniques which select the most useful information from the gathered data set from which decision making can be done efficiently. In this research method, telecommunication industry is considered in which customer churn prediction application is focused. The main goal of this research method is to introduce the data mining technique which can select the most useful information from the telecommunication industry dataset. This is done by introducing the Hybrid Genetic Algorithm with Particle Swarm Optimization (HGAPSO) method which can select the most useful information. In this research, the hybrid HGAPSO combines the advantages of PSO and GA optimally. From the selected information, decision making about the customer churn prediction can be done accurately. Finally decision making is done by predicting the customer behaviour using Support Vector Machine classification approach. The performance metrics are considered such as precision, recall, f-measure, accuracy, True Positive Rate (TPR), False Positive Rate (FPR), time complexity and ROC. Experimental results demonstrated that HGAPSO provides highly scalable which is used for prediction examination in the business intelligence.


Author(s):  
Asia Mahdi Naser alzubaidi ◽  
Eman Salih Al-Shamery

A major and demanding issue in the telecommunications industry is the prediction of churn customers. Churn describes the customer who is attrite from one Telecom service provider to competitors searching for better services offers. Companies from the Telco sector frequently have customer relationship management offices it is the main objective in how to win back defecting clients because preserve long-term customers can be much more beneficial to a company than gain newly recruited customers. Researchers and practitioners are paying great attention and investing more in developing a robust customer churn prediction model, especially in the telecommunication business by proposed numerous machine learning approaches. Many approaches of Classification are established, but the most effective in recent times is a tree-based method. The main contribution of this research is to predict churners/non-churners in the Telecom sector based on project pursuit Random Forest (PPForest) that uses discriminant feature analysis as a novelty extension of the conventional Random Forest approach for learning oblique Project Pursuit tree (PPtree). The proposed methodology leverages the advantage of two discriminant analysis methods to calculate the project index used in the construction of PPtree. The first method used Support Vector Machines (SVM) as a classifier in the construction of PPForest to differentiate between churners and non-churners customers. The second method is a Linear Discriminant Analysis (LDA) to achieve linear splitting of variables node during oblique PPtree construction to produce individual classifiers that are robust and more diverse than classical Random Forest. It found that the proposed methods enjoy the best performance measurements e.g. Accuracy, hit rate, ROC curve, Gini coefficient, Kolmogorov-Smirnov statistic and lift coefficient, H-measure, AUC. Moreover, PPForest based on direct applied of LDA on the raw data delivers an effective evaluator for the customer churn prediction model.


Author(s):  
Chongren Wang ◽  
Dongmei Han ◽  
Weiguo Fan ◽  
Qigang Liu

In this paper, we investigated the customer churn prediction problem in the Internet funds industry. We designed a novel feature embedded convolutional neural networks (FE-CNN) method that can automatically learn features from both the dynamic customer behavioral data and static customer demographic data and can utilize the advantage of convolutional neural networks to automatically learn features that capture the structured information. Our results show that our FE-CNN model outperforms the other traditional machine learning models with hand-crafted features, such as logistic regression (LR), support vector machines (SVM), random forests (RF) and neural networks (NN) in terms of accuracy, area under the receiver operating characteristics curve (AUC) and top-decile lift. Furthermore, we found that after adding the demographic data feature to the basic CNN model, the performance of the FE-CNN model improved. Overall, we found that the FE-CNN is the most powerful way to solve the problem of customer churn prediction in the Internet funds industry. Our FE-CNN method can also be applied to other fields that have both dynamic data and static data.


2014 ◽  
Vol 13 (05) ◽  
pp. 1013-1027 ◽  
Author(s):  
Xi Zhao ◽  
Yong Shi ◽  
Jongwon Lee ◽  
Heung Kee Kim ◽  
Heeseok Lee

Bank customer churn prediction is one of the key businesses for modern commercial banks. Recently, various methods have been investigated to identify the customers who would leave away. This paper proposed a new framework based on feature clustering and classification technique to help commercial banks make an effective decision on customer churn problem. The proposed method benefits from the result of data explorations, clusters the customer features, and makes a decision with a state-of-the-art classifier. When facing the data with large amount of missing items, it does not directly remove the features by some subjective threshold, but clusters the features through the consideration of the relationship and the missing ratio. Real-world data from a major commercial bank of China verifies the feasibility of our framework in industrial applications.


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