Churn classification model for local telecommunication company based on rough set theory

Customer care plays an important role in a company especially in managing churn for Telecommunication Company. Churn is perceived as the behaviour of a customer to leave or to terminate a service. This behaviour causes the loss of profit to companies because acquiring new customer requires higher investment compared to retaining existing ones. Thus, it is necessary to consider an efficient classification model to reduce the rate of churn. Hence, the purpose of this paper is to propose a new classification model based on the Rough Set Theory to classify customer churn. The results of the study show that the proposed Rough Set classification model outperforms the existing models and contributes to significant accuracy improvement.Keywords: customer churn; classification model; telecommunication industry; data mining;rough set

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

Cross-company customer churn prediction in telecommunication: A comparison of data transformation methods

© 2018 Elsevier Ltd Cross-Company Churn Prediction (CCCP) is a domain of research where one company (target) is lacking enough data and can use data from another company (source) to predict customer churn successfully. To support CCCP, the cross-company data is usually transformed to a set of similar normal distribution of target company data prior to building a CCCP model. However, it is still unclear which data transformation method is most effective in CCCP. Also, the impact of data transformation methods on CCCP model performance using different classifiers have not been comprehensively explored in the telecommunication sector. In this study, we devised a model for CCCP using data transformation methods (i.e., log, z-score, rank and box-cox) and presented not only an extensive comparison to validate the impact of these transformation methods in CCCP, but also evaluated the performance of underlying baseline classifiers (i.e., Naive Bayes (NB), K-Nearest Neighbour (KNN), Gradient Boosted Tree (GBT), Single Rule Induction (SRI) and Deep learner Neural net (DP)) for customer churn prediction in telecommunication sector using the above mentioned data transformation methods. We performed experiments on publicly available datasets related to the telecommunication sector. The results demonstrated that most of the data transformation methods (e.g., log, rank, and box-cox) improve the performance of CCCP significantly. However, the Z-Score data transformation method could not achieve better results as compared to the rest of the data transformation methods in this study. Moreover, it is also investigated that the CCCP model based on NB outperform on transformed data and DP, KNN and GBT performed on the average, while SRI classifier did not show significant results in term of the commonly used evaluation measures (i.e., probability of detection, probability of false alarm, area under the curve and g-mean)

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

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

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

Data Mining Technique for Predicting Telecommunications Industry Customer Churn Using both Descriptive and Predictive Algorithms

As markets have become increasingly saturated, companies have acknowledged that their business strategies need to focuson identifying those customers who are most likely to churn. It is becoming common knowledge in business, that retainingexisting customers is the best core marketing strategy to survive in industry. In this research, both descriptive and predictivedata mining techniques were used to determine the calling behaviour of subscribers and to recognise subscribers with highprobability of churn in a telecommunications company subscriber database. First a data model for the input data variablesobtained from the subscriber database was developed. Then Simple K-Means and Expected Maximization (EM) clusteringalgorithms were used for the clustering stage, while Decision Stump, M5P and RepTree Decision Tree algorithms were usedfor the classification stage. The best algorithms in both the clustering and classification stages were used for the predictionprocess where customers that were likely to churn were identified.Keywords: customer churn; prediction; clustering; classificatio