Customer Churn Prediction in Telecommunication Industry Using Classification and Regression Trees and Artificial Neural Network Algorithms

Customer churn is a serious problem, which is a critical issue encountered by large businesses and organizations. Due to the direct impact on the company's revenues, particularly in sectors such as the telecommunications as well as the banking, companies are working to promote ways to identify the churn of prospective consumers. Hence it is vital to investigate issues that influence customer churn to yield appropriate measures to diminish churn. The major objective of this work is to advance a model of churn prediction that helps telecom operatives to envisage clients that are most probable to be subjected to churn. The experimental approach for this study uses the machine learning procedures on the telecom churn dataset, using an improved Relief-F feature selection algorithm to pick related features from the huge dataset. To quantify the model's performance, the result of classification uses CART and ANN, the accuracy shows that ANN has a high predictive capacity of 93.88% compared to the 91.60% CART classifie

A novel customer churn prediction model for the telecommunication industry using data transformation methods and feature selection

Data transformation (DT) is a process that transfers the original data into a form which supports a particular classification algorithm and helps to analyze the data for a special purpose. To improve the prediction performance we investigated various data transform methods. This study is conducted in a customer churn prediction (CCP) context in the telecommunication industry (TCI), where customer attrition is a common phenomenon. We have proposed a novel approach of combining data transformation methods with the machine learning models for the CCP problem. We conducted our experiments on publicly available TCI datasets and assessed the performance in terms of the widely used evaluation measures (e.g. AUC, precision, recall, and F-measure). In this study, we presented comprehensive comparisons to affirm the effect of the transformation methods. The comparison results and statistical test proved that most of the proposed data transformation based optimized models improve the performance of CCP significantly. Overall, an efficient and optimized CCP model for the telecommunication industry has been presented through this manuscript.Comment: 24 page

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

A comparative study of tree-based models for churn prediction : a case study in the telecommunication sector

Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Marketing Research e CRMIn the recent years the topic of customer churn gains an increasing importance, which is the phenomena of the customers abandoning the company to another in the future. Customer churn plays an important role especially in the more saturated industries like telecommunication industry. Since the existing customers are very valuable and the acquisition cost of new customers is very high nowadays. The companies want to know which of their customers and when are they going to churn to another provider, so that measures can be taken to retain the customers who are at risk of churning. Such measures could be in the form of incentives to the churners, but the downside is the wrong classification of a churners will cost the company a lot, especially when incentives are given to some non-churner customers. The common challenge to predict customer churn will be how to pre-process the data and which algorithm to choose, especially when the dataset is heterogeneous which is very common for telecommunication companies’ datasets. The presented thesis aims at predicting customer churn for telecommunication sector using different decision tree algorithms and its ensemble models

Research trends in customer churn prediction: A data mining approach

This study aims to present a very recent literature review on customer churn prediction based on 40 relevant articles published between 2010 and June 2020. For searching the literature, the 40 most relevant articles according to Google Scholar ranking were selected and collected. Then, each of the articles were scrutinized according to six main dimensions: Reference; Areas of Research; Main Goal; Dataset; Techniques; outcomes. The research has proven that the most widely used data mining techniques are decision tree (DT), support vector machines (SVM) and Logistic Regression (LR). The process combined with the massive data accumulation in the telecom industry and the increasingly mature data mining technology motivates the development and application of customer churn model to predict the customer behavior. Therefore, the telecom company can effectively predict the churn of customers, and then avoid customer churn by taking measures such as reducing monthly fixed fees. The present literature review offers recent insights on customer churn prediction scientific literature, revealing research gaps, providing evidences on current trends and helping to understand how to develop accurate and efficient Marketing strategies. The most important finding is that artificial intelligence techniques are are obviously becoming more used in recent years for telecom customer churn prediction. Especially, artificial NN are outstandingly recognized as a competent prediction method. This is a relevant topic for journals related to other social sciences, such as Banking, and also telecom data make up an outstanding source for developing novel prediction modeling techniques. Thus, this study can lead to recommendations for future customer churn prediction improvement, in addition to providing an overview of current research trends.info:eu-repo/semantics/acceptedVersio

Customer Churn Prediction in Telecom Sector: A Survey and way a head

© 2021 International Journal of Scientific & Technology Research. This work is licensed under a Creative Commons Attribution 4.0 International License.The telecommunication (telecom)industry is a highly technological domain has rapidly developed over the previous decades as a result of the commercial success in mobile communication and the internet. Due to the strong competition in the telecom industry market, companies use a business strategy to better understand their customers’ needs and measure their satisfaction. This helps telecom companies to improve their retention power and reduces the probability to churn. Knowing the reasons behind customer churn and the use of Machine Learning (ML) approaches for analyzing customers' information can be of great value for churn management. This paper aims to study the importance of Customer Churn Prediction (CCP) and recent research in the field of CCP. Challenges and open issues that need further research and development to CCP in the telecom sector are exploredPeer reviewe

Classification of customer call details records using Support Vector Machine (SVMs) and Decision Tree (DTs)

On a daily basis, telecom businesses create a massive amount of data. Decision-makers underlined that acquiring new customers is more difficult than maintaining current ones. Further, existing churn customers' data may be used to identify churn consumers as well as their behavior patterns. This study provides a churn prediction model for the telecom industry that employs SVMs and DTs to detect churn customers. The suggested model uses classification techniques to churn customers' data, with the Support Vector Machine (SVMs) method performing well 98.36 % properly categorized instances) and the Decision Tree (DTs) approach performing poorly 33.04 % and the decision tree algorithm deliver outstanding results