scholarly journals A REVIEW ON CUSTOMER CHURN PREDICTION DATA MINING MODELING TECHNIQUES

2018 ◽  
Vol 11 (27) ◽  
pp. 1-7
Author(s):  
Nadeem Ahmad Naz ◽  
Umar Shoaib ◽  
M. Shahzad Sarfraz ◽  
◽  
◽  
...  
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.


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.


Customer Relationship Management (CRM) is a challenging issue in marketing to better understand the customers and maintaining long-term relationships with them to increase the profitability. It plays a vital role in customer centered marketing domain which provides a better service and satisfies the customer requirements based on their characteristics in consuming patterns and smoothes the relationship where various representatives communicate and collaborate. Customer Churn prediction is one of the area in CRM that explores the transaction and communication process and analyze the customer loyalty. Data mining ease this process with classification techniques to explore pattern from large datasets. It provides a good technical support to analyze large amounts of complex customer data. This research paper applies data mining classification technique to predict churn customers in three variant sectors Banking, Ecommerce and Telecom. For Classification, enhanced logistic regression with regularization and optimization technique is applied. The work is implemented in Rapid miner tool and the performance of the prediction algorithm is assessed for three variant sectors with suitable evaluation metrics.


Sign in / Sign up

Export Citation Format

Share Document