scholarly journals Performance Comparison of Neural Network Training Algorithms for Modeling Customer Churn Prediction

2018 ◽  
Vol 7 (2.15) ◽  
pp. 35 ◽  
Author(s):  
Mohd Khalid Awang ◽  
Mohammad Ridwan Ismail ◽  
Mokhairi Makhtar ◽  
M Nordin A Rahman ◽  
Abd Rasid Mamat

Predicting customer churn has become the priority of every telecommunication service provider as the market  is becoming more saturated and competitive. This paper presents a comparison of neural network learning algorithms for customer churn prediction.  The data set used to train and test the neural network algorithms was provided by one of the leading telecommunication company in Malaysia. The Multilayer Perceptron (MLP) networks are trained using nine (9) types of learning algorithms, which are Levenberg Marquardt backpropagation (trainlm), BFGS Quasi-Newton backpropagation (trainbfg), Conjugate Gradient backpropagation with Fletcher-Reeves Updates (traincgf), Conjugate Gradient backpropagation with Polak-Ribiere Updates (traincgp), Conjugate Gradient backpropagation with Powell-Beale Restarts (traincgb), Scaled Conjugate Gradient backpropagation (trainscg), One Step Secant backpropagation (trainoss), Bayesian Regularization backpropagation (trainbr), and Resilient backpropagation (trainrp). The performance of the Neural Network is measured based on the prediction accuracy of the learning and testing phases. LM learning algorithm is found to be the optimum model of a neural network model consisting of fourteen input units, one hidden node and one output node. The best result of the experiment indicated that this model is able to produce the performance accuracy of 94.82%. 

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Usman Tariq ◽  
Muhammad Babar ◽  
Marc Poulin ◽  
Akmal Saeed Khattak

Purpose The purpose of the proposed model is to assist the e-business to predict the churned users using machine learning. This paper aims to monitor the customer behavior and to perform decision-making accordingly. Design/methodology/approach The proposed model uses the 2-D convolutional neural network (CNN; a technique of deep learning). The proposed model is a layered architecture that comprises two different phases that are data load and preprocessing layer and 2-D CNN layer. In addition, the Apache Spark parallel and distributed framework is used to process the data in a parallel environment. Training data is captured from Kaggle by using Telco Customer Churn. Findings The proposed model is accurate and has an accuracy score of 0.963 out of 1. In addition, the training and validation loss is extremely less, which is 0.004. The confusion matric results show the true-positive values are 95% and the true-negative values are 94%. However, the false-negative is only 5% and the false-positive is only 6%, which is effective. Originality/value This paper highlights an inclusive description of preprocessing required for the CNN model. The data set is addressed more carefully for the successful customer churn prediction.


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.


Information ◽  
2018 ◽  
Vol 9 (11) ◽  
pp. 288 ◽  
Author(s):  
Hossam Faris

Customer churn is one of the most challenging problems for telecommunication companies. In fact, this is because customers are considered as the real asset for the companies. Therefore, more companies are increasing their investments in developing practical solutions that aim at predicting customer churn before it happens. Identifying which customer is about to churn will significantly help the companies in providing solutions to keep their customers and optimize their marketing campaigns. In this work, an intelligent hybrid model based on Particle Swarm Optimization and Feedforward neural network is proposed for churn prediction. PSO is used to tune the weights of the input features and optimize the structure of the neural network simultaneously to increase the prediction power. In addition, the proposed model handles the imbalanced class distribution of the data using an advanced oversampling technique. Evaluation results show that the proposed model can significantly improve the coverage rate of churn customers in comparison with other state-of-the-art classifiers. Moreover, the model has high interpretability, where the assigned feature weights can give an indicator about the importance of their corresponding features in the classification process.


Author(s):  
Yasser Khan

Telecommunication customer churn is considered as major cause for dropped revenue and customer baseline of voice, multimedia and broadband service provider. There is strong need on focusing to understand the contributory factors of churn. Now considering factors from data sets obtained from Pakistan major telecom operators are applied for modeling. On the basis of results obtained from the optimal techniques, comparative technical evaluation is carried out. This research study is comprised mainly of proposition of conceptual frame work for telecom customer churn that lead to creation of predictive model. This is trained tested and evaluated on given data set taken from Pakistan Telecom industry that has provided accurate & reliable outcomes. Out of four prevailing statistical and machine learning algorithm, artificial neural network is declared the most reliable model, followed by decision tree. The logistic regression is placed at last position by considering the performance metrics like accuracy, recall, precision and ROC curve. The results from research has revealed main parameters found responsible for customer churn were data rate, call failure rate, mean time to repair and monthly billing amount. On the basis of these parameter artificial neural network has achieved 79% more efficiency as compare to low performing statistical techniques.


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