Projection pursuit random forest using discriminant feature analysis model for churners prediction in telecom industry

A major and demanding issue in the telecommunications industry is the prediction of churn customers. Churn describes the customer who is attrite from one Telecom service provider to competitors searching for better services offers. Companies from the Telco sector frequently have customer relationship management offices it is the main objective in how to win back defecting clients because preserve long-term customers can be much more beneficial to a company than gain newly recruited customers. Researchers and practitioners are paying great attention and investing more in developing a robust customer churn prediction model, especially in the telecommunication business by proposed numerous machine learning approaches. Many approaches of Classification are established, but the most effective in recent times is a tree-based method. The main contribution of this research is to predict churners/non-churners in the Telecom sector based on project pursuit Random Forest (PPForest) that uses discriminant feature analysis as a novelty extension of the conventional Random Forest approach for learning oblique Project Pursuit tree (PPtree). The proposed methodology leverages the advantage of two discriminant analysis methods to calculate the project index used in the construction of PPtree. The first method used Support Vector Machines (SVM) as a classifier in the construction of PPForest to differentiate between churners and non-churners customers. The second method is a Linear Discriminant Analysis (LDA) to achieve linear splitting of variables node during oblique PPtree construction to produce individual classifiers that are robust and more diverse than classical Random Forest. It found that the proposed methods enjoy the best performance measurements e.g. Accuracy, hit rate, ROC curve, Gini coefficient, Kolmogorov-Smirnov statistic and lift coefficient, H-measure, AUC. Moreover, PPForest based on direct applied of LDA on the raw data delivers an effective evaluator for the customer churn prediction model

Enhancing Unbalanced Data Classification with Cross-Validation and Extreme Gradient Boosting: A Comprehensive Analysis

As a novel and efficient ensemble learning algorithm, XGBoost has been widely applied due to its multiple advantages, but its classification effect in cases of data imbalance is often not ideal. Aiming at this problem, efforts were made to optimize XGBoost and the Cross Validation algorithm. The main idea is to combine cross validation and XGBoost on unbalanced data for data processing, and then get the final model based on XGBoost through training. At the same time, optimal parameters are searched and adjusted automatically through optimization algorithms to realize more accurate classification predictions. In the testing phase, the area under the curve (AUC) is used as an evaluation indicator to compare and analyze the classification performance of various sampling methods and algorithm models. The results of the model analysis using AUC are expected to verify the feasibility and effectiveness of the proposed algorithm

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

Customer churn prediction using composite deep learning technique

Customer churn, a phenomenon that causes large financial losses when customers leave a business, makes it difficult for modern organizations to retain customers. When dissatisfied customers find their present company\u27s services inadequate, they frequently migrate to another service provider. Machine learning and deep learning (ML/DL) approaches have already been used to successfully identify customer churn. In some circumstances, however, ML/DL-based algorithms lacks in delivering promising results for detecting client churn. Previous research on estimating customer churn revealed unexpected forecasts when utilizing machine learning classifiers and traditional feature encoding methodologies. Deep neural networks were also used in these efforts to extract features without taking into account the sequence information. In view of these issues, the current study provides an effective method for predicting customer churn based on a hybrid deep learning model termed BiLSTM-CNN. The goal is to effectively estimate customer churn using benchmark data and increase the churn prediction process\u27s accuracy. The experimental results show that when trained, tested, and validated on the benchmark dataset, the proposed BiLSTM-CNN model attained a remarkable accuracy of 81%

Measuring churner influence on pre-paid subscribers using fuzzy logic

In the last decades, mobile phones have become the major medium for communication between humans. The site effect is the loss of subscribers. Consequently, Telecoms operators invest in developing algorithms for quantifying the risk to churn and to influence other subscribers to churn. The objective is to prioritize the retention of subscribers in their network due to the cost of obtaining a new subscriber is four times more expensive than retaining subscribers. Hence, we use Extremely Random Forest to classify churners and non-churners obtaining a Lift value at 10% of 5.5. Then, we rely on graph-based measures such as Degree of Centrality and Page rank to measure emitted and received influence in the social network of the carrier. Our methodology allows summarising churn risk score, relying on a Fuzzy Logic system, combining the churn probability and the risk of the churner to leave the network with other subscriber

Toward a model of customer experience

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.Retaining high-value and profitable customers is a major strategic objective for many companies. In mature mobile phone markets where growth has slowed, the defection of customers from one network to another has intensified and is strongly fuelled by poor Customer Experience. Trends in the service economy suggest that experience can be exploited as a means of supplying the basis of a new economic offering, ignited in part by the shift that is taking place in the analysis of people’s interaction with digital products. In this light, the research describes a strategic approach to the use of Information Systems as a means of improving Customer Experience. Using Action Research in a mobile telecommunications operator, a Customer Experience Monitoring and Action Response model (CEMAR) is developed that evaluates disparate customer data, residing across many systems, builds experience profiles and suggests appropriate contextual actions where experience is poor. The model provides value in identifying issues, understanding them in the context of the overall Customer Experience (over time) and dealing with them appropriately. The novelty of the approach is the synthesis of data analysis with an enhanced understanding of Customer Experience which is developed implicitly, in real-time and in advance of any instigation by the customer.Royal Academy of Engineerin

Uplift modeling using the transformed outcome approach

EPIA 2022. Conferência Internacional, realizada em Lisboa, Portugal, de 31 de agosto a 2 de setembro de 2022.Churn and how to deal with it is an essential issue in the telecommunications sector. Within the scope of actionable knowledge, we argue that it is crucial to find effective personalized interventions that can lead to a reduction in dropouts and that, at the same time, make it possible to determine the causal effect of these interventions. Considering an intervention that encourages clients to opt for a longer-term contract for benefits, we used Uplift modeling and the Transformed Outcome Approach as a machine learning-based technique for individual-level prediction. The result is actionable profiles of persuadable customers that increase retention and strike the right balance between the campaign budget.info:eu-repo/semantics/publishedVersio

Prediction of Customers Churn in Telecommunication Industry

In the developed world, mobile markets have reached saturation on subscriber penetration and connections growth. The challenge for operators has evolved from attracting new customers to retaining existing ones. Various components have an impact on churn. Therefore, it is very important to understand the behaviour of the customers, encourage them in spending more and then predicting the future by preventing their attrition. As the industry is evolving, the biggest challenge for operators is to engage with consumers and retain their loyalty by delivering more competitive and innovative value-added services. While understanding consumer needs remains essential to improve customer retention, other emerging tariffs and services are likely to carry a long-term impact on churn (including national, international and roaming bundles tariffs and mobile services). The churn might be voluntary in cases they want to leave the network they actually are using, or involuntary churn in case of unpaid bills. The methodology used to do the right evaluations in order to achieve strong results in this field is very large and varied. The scope of this thesis is to identify and analyse different appropriate models that can help the data analysts to find the churners in Telecommunication industry. In this thesis we are going to discuss on two important topics in telecommunication markets and their respective predictive models, which tend to understand the customer behaviour towards different competitors: market share in telecommunication industry and customer churn