scholarly journals Negative Correlation Learning for Customer Churn Prediction: A Comparison Study

2015 ◽  
Vol 2015 ◽  
pp. 1-7 ◽  
Author(s):  
Ali Rodan ◽  
Ayham Fayyoumi ◽  
Hossam Faris ◽  
Jamal Alsakran ◽  
Omar Al-Kadi

Recently, telecommunication companies have been paying more attention toward the problem of identification of customer churn behavior. In business, it is well known for service providers that attracting new customers is much more expensive than retaining existing ones. Therefore, adopting accurate models that are able to predict customer churn can effectively help in customer retention campaigns and maximizing the profit. In this paper we will utilize an ensemble of Multilayer perceptrons (MLP) whose training is obtained using negative correlation learning (NCL) for predicting customer churn in a telecommunication company. Experiments results confirm that NCL based MLP ensemble can achieve better generalization performance (high churn rate) compared with ensemble of MLP without NCL (flat ensemble) and other common data mining techniques used for churn analysis.

2019 ◽  
Vol 53 (3) ◽  
pp. 318-332
Author(s):  
Sandhya N. ◽  
Philip Samuel ◽  
Mariamma Chacko

Purpose Telecommunication has a decisive role in the development of technology in the current era. The number of mobile users with multiple SIM cards is increasing every second. Hence, telecommunication is a significant area in which big data technologies are needed. Competition among the telecommunication companies is high due to customer churn. Customer retention in telecom companies is one of the major problems. The paper aims to discuss this issue. Design/methodology/approach The authors recommend an Intersection-Randomized Algorithm (IRA) using MapReduce functions to avoid data duplication in the mobile user call data of telecommunication service providers. The authors use the agent-based model (ABM) to predict the complex mobile user behaviour to prevent customer churn with a particular telecommunication service provider. Findings The agent-based model increases the prediction accuracy due to the dynamic nature of agents. ABM suggests rules based on mobile user variable features using multiple agents. Research limitations/implications The authors have not considered the microscopic behaviour of the customer churn based on complex user behaviour. Practical implications This paper shows the effectiveness of the IRA along with the agent-based model to predict the mobile user churn behaviour. The advantage of this proposed model is as follows: the user churn prediction system is straightforward, cost-effective, flexible and distributed with good business profit. Originality/value This paper shows the customer churn prediction of complex human behaviour in an effective and flexible manner in a distributed environment using Intersection-Randomized MapReduce Algorithm using agent-based model.


In the face of extreme competitive telecommunication market, the cost of acquiring new customer is much more expensive than to retain the existing customer. Therefore, it has become imperative to pay much attention towards retaining the existing customers in order to get stabilize in market comprised of vibrant service providers. In current market, a number of prevailing statistical techniques for customer churn management are replaced by more machine learning and predictive analysis techniques. This article reviews the customer churn prediction problem, factors escalating the phenomena, prediction through predictive analytics, steps for processing of predictive analytics and evaluation of performance metrics for various churn prediction models are surveyed. Moreover, the CRM data from Pakistan Telecommunication Company limited as case study to discuss the process of data mining and predictive analytics for customer churn prediction.


Customer is an asset of any business organization, whose probable chances of churn is loss. Several challenges are to be considered towards controlling customer churn. Machine learning approach is needed to predict an early churn. Even though various soft computational approaches had been proposed, an optimized computational approach which identifies early churn prediction is necessary. The proposed approach NELCO predicts early customer churn using Negative Correlation Learning (NCL) which uses k-means neighbourhood discriminant similarity indices over network of ensemble values. NELCO proves to have an optimal accuracy towards early prediction of churn, as well as suggests that customer retention rate is higher over PSO, ACO approaches


Author(s):  
Irina V. Pustokhina ◽  
Denis A. Pustokhin ◽  
Phong Thanh Nguyen ◽  
Mohamed Elhoseny ◽  
K. Shankar

AbstractCustomer retention is a major challenge in several business sectors and diverse companies identify the customer churn prediction (CCP) as an important process for retaining the customers. CCP in the telecommunication sector has become an essential need owing to a rise in the number of the telecommunication service providers. Recently, machine learning (ML) and deep learning (DL) models have begun to develop effective CCP model. This paper presents a new improved synthetic minority over-sampling technique (SMOTE) with optimal weighted extreme machine learning (OWELM) called the ISMOTE-OWELM model for CCP. The presented model comprises preprocessing, balancing the unbalanced dataset, and classification. The multi-objective rain optimization algorithm (MOROA) is used for two purposes: determining the optimal sampling rate of SMOTE and parameter tuning of WELM. Initially, the customer data involve data normalization and class labeling. Then, the ISMOTE is employed to handle the imbalanced dataset where the rain optimization algorithm (ROA) is applied to determine the optimal sampling rate. At last, the WELM model is applied to determine the class labels of the applied data. Extensive experimentation is carried out to ensure the ISMOTE-OWELM model against the CCP Telecommunication dataset. The simulation outcome portrayed that the ISMOTE-OWELM model is superior to other models with the accuracy of 0.94, 0.92, 0.909 on the applied dataset I, II, and III, respectively.


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