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

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

Review of Data Mining Techniques for Churn Prediction in Telecom

Telecommunication sector generates a huge amount of data due to increasing number of subscribers, rapidly renewable technologies; data based applications and other value added service. This data can be usefully mined for churn analysis and prediction. Significant research had been undertaken by researchers worldwide to understand the data mining practices that can be used for predicting customer churn. This paper provides a review of around 100 recent journal articles starting from year 2000 to present the various data mining techniques used in multiple customer based churn models. It then summarizes the existing telecom literature by highlighting the sample size used, churn variables employed and the findings of different DM techniques. Finally, we list the most popular techniques for churn prediction in telecom as decision trees, regression analysis and clustering, thereby providing a roadmap to new researchers to build upon novel churn management models

Review of Data Mining Techniques for Churn Prediction in Telecom

Telecommunication sector generates a huge amount of data due to increasing number of subscribers, rapidly renewable technologies; data based applications and other value added service. This data can be usefully mined for churn analysis and prediction. Significant research had been undertaken by researchers worldwide to understand the data mining practices that can be used for predicting customer churn. This paper provides a review of around 100 recent journal articles starting from year 2000 to present the various data mining techniques used in multiple customer based churn models. It then summarizes the existing telecom literature by highlighting the sample size used, churn variables employed and the findings of different DM techniques. Finally, we list the most popular techniques for churn prediction in telecom as decision trees, regression analysis and clustering, thereby providing a roadmap to new researchers to build upon novel churn management models

Customer churn prediction in telecom using machine learning and social network analysis in big data platform

Customer churn is a major problem and one of the most important concerns for large companies. Due to the direct effect on the revenues of the companies, especially in the telecom field, companies are seeking to develop means to predict potential customer to churn. Therefore, finding factors that increase customer churn is important to take necessary actions to reduce this churn. The main contribution of our work is to develop a churn prediction model which assists telecom operators to predict customers who are most likely subject to churn. The model developed in this work uses machine learning techniques on big data platform and builds a new way of features' engineering and selection. In order to measure the performance of the model, the Area Under Curve (AUC) standard measure is adopted, and the AUC value obtained is 93.3%. Another main contribution is to use customer social network in the prediction model by extracting Social Network Analysis (SNA) features. The use of SNA enhanced the performance of the model from 84 to 93.3% against AUC standard. The model was prepared and tested through Spark environment by working on a large dataset created by transforming big raw data provided by SyriaTel telecom company. The dataset contained all customers' information over 9 months, and was used to train, test, and evaluate the system at SyriaTel. The model experimented four algorithms: Decision Tree, Random Forest, Gradient Boosted Machine Tree "GBM" and Extreme Gradient Boosting "XGBOOST". However, the best results were obtained by applying XGBOOST algorithm. This algorithm was used for classification in this churn predictive model.Comment: 24 pages, 14 figures. PDF https://rdcu.be/budK

A SLR on Customer Dropout Prediction

Dropout prediction is a problem that is being addressed with machine learning algorithms; thus, appropriate approaches to address the dropout rate are needed. The selection of an algorithm to predict the dropout rate is only one problem to be addressed. Other aspects should also be considered, such as which features should be selected and how to measure accuracy while considering whether the features are appropriate according to the business context in which they are employed. To solve these questions, the goal of this paper is to develop a systematic literature review to evaluate the development of existing studies and to predict the dropout rate in contractual settings using machine learning to identify current trends and research opportunities. The results of this study identify trends in the use of machine learning algorithms in different business areas and in the adoption of machine learning algorithms, including which metrics are being adopted and what features are being applied. Finally, some research opportunities and gaps that could be explored in future research are presented.info:eu-repo/semantics/publishedVersio

A SLR on Customer Dropout Prediction

Dropout prediction is a problem that is being addressed with machine learning algorithms; thus, appropriate approaches to address the dropout rate are needed. The selection of an algorithm to predict the dropout rate is only one problem to be addressed. Other aspects should also be considered, such as which features should be selected and how to measure accuracy while considering whether the features are appropriate according to the business context in which they are employed. To solve these questions, the goal of this paper is to develop a systematic literature review to evaluate the development of existing studies and to predict the dropout rate in contractual settings using machine learning to identify current trends and research opportunities. The results of this study identify trends in the use of machine learning algorithms in different business areas and in the adoption of machine learning algorithms, including which metrics are being adopted and what features are being applied. Finally, some research opportunities and gaps that could be explored in future research are presented.info:eu-repo/semantics/publishedVersio

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

Machine learning techniques in churn rate analysis

RESUMEN: Este trabajo tiene como objetivo ofrecer una visión simplificada de la importancia del estudio del Churn Rate por parte de las empresas. A su vez, se explican diferentes técnicas de Data Mining que sirven para medir esta tasa y aportar información de cómo reducirla. La motivación de este análisis viene dada por la necesidad de conocer cuáles son las técnicas más utilizadas en su medición y a la vez averiguar cuáles son más efectivas en diferentes escenarios. Se comienza definiendo el concepto de Churn Rate y su importancia para después continuar con la definición de Data Mining. Mas adelante se explican cuatro métodos que sirven para calcular esta tasa aportando ejemplos prácticos de su efectividad. Todo esto se apoyará en una revisión bibliográfica de diferentes estudios relacionados con este tema. El objetivo de esta revisión es descubrir cuales son los métodos más utilizados en el análisis del Churn Rate en los últimos cinco años. Por otro lado, también se busca encontrar cuales son los más eficaces para este cálculo. Como resultado de este análisis se puede concluir que las técnicas de Data Mining más utilizadas en los últimos años son el Support Vector Machine y las Redes Neuronales Artificiales. Estas dos técnicas son las más relacionadas con la inteligencia artificial ya que se busca crear modelo de aprendizaje automatizado para obtener mejores resultados. Las Regresiones y los Árboles de decisión son técnicas menos usadas en el campo objeto de estudio de este trabajo pero que ofrecen unos resultados más precisos, al menos a corto plazo, quizás debidos a su mayor sencillez de aplicación. El tamaño de la muestra utilizada para el análisis también es importante ya que a mayor tamaño menor precisión, pero más posibilidades de desarrollar un modelo de aprendizaje automatizado que de mejores resultados a largo plazo.ABSTRACT: This work aims to provide a simplified view of the importance of the study of the Churn Rate by companies. At the same time, different techniques of Data Mining are explained that serve to measure this rate and to contribute information of how to reduce it. The motivation of this analysis is given by the need to know which are the most used techniques in their measurement and at the same time find out which are more effective in different scenarios. It begins by defining the concept of Churn Rate and its importance and then continue with the definition of Data Mining. Later on, four methods are explained that serve to calculate this rate providing practical examples of its effectiveness. All this will be supported by a bibliographic review of different studies related to this topic. The objective of this review is to discover which are the most used methods in the analysis of the Churn Rate in the last five years. On the other hand, it also seeks to find which are the most effective for this calculation. As a result of this analysis it can be concluded that the most used Data Mining techniques in recent years are the Support Vector Machine and Artificial Neural Networks. These two techniques are the most related to artificial intelligence as it seeks to create automated learning model for better results. Regressions and Decision Trees are less used techniques in this field, but they offer more precise results, at least in the short term, perhaps due to their simplicity of application. The size of the sample used for analysis is also important because the larger the sample, the lower the accuracy, but the more likely it is to develop an automated learning model that will yield better long-term results.Máster en Empresa y Tecnologías de la Informació

Applying data mining in telecommunications

This thesis applies data mining in commercial settings in the telecommunications industry. The research for this thesis has been performed at T-Mobile Netherlands B.V. and the methods described in some of the chapters have been also applied in Deutsche Telekom subsidiaries in other countries. We had a rare opportunity to work on real commercial data sets and have the results of our research deployed in practice. Throughout this thesis we describe some of the challenges that data miners (or data scientists) meet when working on business problems and our solutions to these problems. The complex data sets we were analyzing contained in certain cases millions of records. In this research we were using simple methods combined in innovative ways to achieve results that were either an improvement on how the business was previously solving these problems or solving important business problems that were not addressed before in such detail. We address the stages of CRISP-DM (CRoss Industry Standard Process for Data Mining), and our main focus is on the stages least covered in literature.T-Mobile Netherlands B.V.Algorithms and the Foundations of Software technolog