A bi-level decision model for customer churn analysis

This paper develops a bi-level decision model and a solution approach to optimizing service features for a company to reduce its customer churn rate. First, a bi-level decision model, together with its modeling approach, are developed to describe the gaming relationship between decision makers in a company (service provider) and its customers. Then, a practical solution approach to reaching solutions for the bi-level-modeled customer churn problem is developed. Finally, experiments and case studies are conducted to illustrate the bi-level decision model and the solution approach. © 2013 Wiley Periodicals, Inc

ENHANCEMENT OF CHURN PREDICTION ALGORITHMS

Customer churn can be described as the process by which consumers of goods and services discontinue the consumption of a product or service and switch over to a competitor.It is of great concern to many companies. Thus, decision support systems are needed to overcome this pressing issue and ensure good return on investments for organizations. Decision support systems use analytical models to provide the needed intelligence to analyze an integrated customer record database to predict customers that will churn and offer recommendations that will prevent them from churning. Customers churn prediction, unlike most conventional business intelligence techniques, deals with customer demographics, net worth-value, and market opportunities. It is used in determining customers who are likely to churn, those likely to remain loyal to the organization, and for prediction of future churn rates. Customer defection is naturally a slow rate event, and it is not easily detected by most business intelligent solutions available in the market; especially when data is skewed, large, and distinct. Thus, accurate and precise prediction methods are needed to detect the churning trend. In this study, a churn model that applies business intelligence techniques to detect the possibility that a customer will churn using churn trend analysis of customer records is proposed. The model applies clustering algorithms and enhanced SPRINT decision tree algorithms to explore customer record database, and identify the customer profile and behavior patterns. The Model then predicts the possibility that a customer will churn. Additionally, it offers solutions for retaining customers and making them loyal to a business entity by recommending customer-relationship management measures

Twitter Analysis to Predict the Satisfaction of Saudi Telecommunication Companies’ Customers

The flexibility in mobile communications allows customers to quickly switch from one service provider to another, making customer churn one of the most critical challenges for the data and voice telecommunication service industry. In 2019, the percentage of post-paid telecommunication customers in Saudi Arabia decreased; this represents a great deal of customer dissatisfaction and subsequent corporate fiscal losses. Many studies correlate customer satisfaction with customer churn. The Telecom companies have depended on historical customer data to measure customer churn. However, historical data does not reveal current customer satisfaction or future likeliness to switch between telecom companies. Current methods of analysing churn rates are inadequate and faced some issues, particularly in the Saudi market. This research was conducted to realize the relationship between customer satisfaction and customer churn and how to use social media mining to measure customer satisfaction and predict customer churn. This research conducted a systematic review to address the churn prediction models problems and their relation to Arabic Sentiment Analysis. The findings show that the current churn models lack integrating structural data frameworks with real-time analytics to target customers in real-time. In addition, the findings show that the specific issues in the existing churn prediction models in Saudi Arabia relate to the Arabic language itself, its complexity, and lack of resources. As a result, I have constructed the first gold standard corpus of Saudi tweets related to telecom companies, comprising 20,000 manually annotated tweets. It has been generated as a dialect sentiment lexicon extracted from a larger Twitter dataset collected by me to capture text characteristics in social media. I developed a new ASA prediction model for telecommunication that fills the detected gaps in the ASA literature and fits the telecommunication field. The proposed model proved its effectiveness for Arabic sentiment analysis and churn prediction. This is the first work using Twitter mining to predict potential customer loss (churn) in Saudi telecom companies, which has not been attempted before. Different fields, such as education, have different features, making applying the proposed model is interesting because it based on text-mining

Who Renews? Who Leaves? Identifying Customer Churn in a Telecom Company Using Big Data Techniques

Within the context of the telecom industry, this teaching case is an active learning analytics exercise to help students build hands-on expertise on how to utilize Big Data to solve a business problem. Particularly, the case utilizes an analytics method to help develop a customer retention strategy to mitigate against an increasing customer churn problem in a telecom company. Traditionally, the forecast of customer churn uses various demographic and cell phone usage data. Big Data techniques permit a much finer granularity in the prediction of churn by analyzing specific activities a customer undertakes before churning. The authors help students to understand how data from customer interactions with the company through multiple channels can be combined to create a “session.” Subsequently, the authors demonstrate the use of effective visualization to identify the most relevant paths to customer churn. The Teradata Aster Big Data platform is used in developing this case study

Dropout Prediction: A Systematic Literature Review

Dropout predicting is challenging analysis process which requires appropriate approaches to address the dropout. Existing approaches are applied in different areas such as education, telecommunications, retail, social networks, and banking services. The goal is to identify customers in the risk of dropout to support retention strategies. This research developed a systematic literature review to evaluate the development of existing studies to predict dropout using machine learning, following the guidelines recommended by Kitchenham and Peterson. The systematic review followed three phases planning, conducting, and reporting. The selection of the most relevant articles was based on the use of Active Systematic Review tool using artificial intelligence algorithms. The criteria identified 28 articles and several research lines where identified. Dropout is a transversal problem for several sectors of economic activity, where it can be taken countermeasures before it happens if detected early