SlideShare a Scribd company logo
Computational IntelligenceComputational Intelligence
methods for churn predictionmethods for churn prediction
in telecommunicationin telecommunication
companiescompanies
Hossam Faris, PhD
Associate Professor
Business Information Technology Department
King Abdullah II School for Information Technology
The University of Jordan
hossam.faris@ju.edu.jo
7ossam@gmail.com
IntroductionIntroduction
The market is very dynamic and highly
competitive.
It is very easy for customers to switch
from one service provider to another for
a better price rates or service quality.
Telecommunication companies suffer a
loss of 20-40% of their customers every
year!
IntroductionIntroduction
• Companies are aware that attracting new
customers is much more costly than
keeping current customers.
• Companies in the telecommunication
market realize that customers are the
most important asset for them.
What isWhat is customer churncustomer churn ??
In business, “customer churn” is a term
commonly refers to customers who stop
using some services or terminate their
contract and subscription with a company
to switch to another competitor.
Customer churn has many reasons and
factors. Such reasons include quality and
cost of services.
Churn management and predictionChurn management and prediction
The goal of churn management is to keep
current customers as long as the company is
alive in the market.
Revenue comes from the creation and
maintaining long-term relationships with the
customers.
A better churn management can help
Customer Relationship Management (CRM) in
decision making and establishing effective
customer retention campaigns.
The targetThe target
• We need to identify (predict) those
customers who are probably will leave.
• Specific marketing campaigns could be
designed to target the most risky
customer segments.
• Special discounts and subscriptions could
be offered.
From where to start ?From where to start ?
Detecting a churn by observation is almost
impossible.
Traditional surveys based on running
questionnaires or interviews suffer from a
high cost, limited access to customer
population and data self-reporting
Telecom companies realize that their
existing customer database is the key.
Service providers started to invest more in
data mining techniques that can aid in having
an efficient churn prediction models
ChallengesChallenges
The available data is imbalanced.
Different cost for each class.
High number of related variables.
BigData
Customer related featuresCustomer related features
Feature name Description 
3G The subscriber is provided with 3G service (Yes, No)
Total Consumption (con) Total monthly fees (calling +SMS) in (JD)
Calling fees Total monthly calling fees (JD)
Local SMS fees Monthly local SMS fees(JD)
Int. calling fees Monthly fees for international calling (JD)
Local SMS count Number of monthly local SMS
Int. SMS count Number of monthly international SMS
Int. MOU Total of international outgoing calls in minutes
Total MOU Total minutes of use for all outgoing calls
On net MOU Minutes of use for on-net-outgoing calls
Churn Churning customer status (Yes, No)
Research linesResearch lines
 The state-of-art basic classifiers approaches:
create or modify the algorithms that exist for
churn prediction.
 Data level approaches: add a preprocessing step
where the data distribution is rebalanced in order
to decrease the effect of the skewed class
distribution in the learning process.
Ensembles of classifiers each ensemble is a group
of classifiers trained independently then all their
predictions are combines. Ensemble classifier
proofed to have better generalization and
outperform single classifiers.
1.Basic classifiers approach1.Basic classifiers approach
Examples: The multilayer Perceptron
(MLP)
Genetic ProgrammingGenetic Programming
Identifying important variables inIdentifying important variables in
MLPMLP
Change on Error (CoE)Change on Error (CoE)
Garson’s weights methodGarson’s weights method
Identifying important variables inIdentifying important variables in
MLPMLP
During the evolutionary cycle of GP,
input features that help GP in improving
the fitness value of the generated
individuals will survive while the weak the
features will be excluded and disappear
from the remaining generations.
Variable Frequency in GPVariable Frequency in GP
2.Data level approaches2.Data level approaches
This approach is performed on two stages:
Cleaning the data : A clustering method is
used to identify different behavior patterns
of customers. Small and unrepresentative
data are treated as outliers and noise. So
they are eliminated.
Modeling: A classification technique is
applied to develop the final prediction
model.
SOM+GPSOM+GP
Self Organizing Maps (SOM)Self Organizing Maps (SOM)
Applied frameworkApplied framework
ResultsResults
3.Ensembles of classifiers3.Ensembles of classifiers
• NCL is an ensemble
learning technique that
encourages diversity
explicitly among
ensemble members
through their negative
correlation
• Negative correlation
Learning based on MLP
networks
NCL+MLP resultsNCL+MLP results
Future workFuture work
Investigating the application of cost-
sensitive methods in churn prediction.
It is very interesting to study the most
influencing factors that affect customer
churn in different regions.
Published researchPublished research
• Faris, Hossam, Bashar Al-Shboul, and Nazeeh Ghatasheh. "A
genetic programming based framework for churn prediction in
telecommunication industry." Computational Collective Intelligence.
Technologies and Applications. Springer International Publishing,
(2014).
• Rodan, Ali, Faris, Hossam and others. "A support vector machine
approach for churn prediction in telecom industry." International
Information Institute (Tokyo). Information17.8 (2014): 3961.
• Faris, Hossam. "Neighborhood cleaning rules and particle swarm
optimization for predicting customer churn behavior in telecom
industry."International Journal of Advanced Science and Technology 68
(2014): 11-22.
• Rodan, A., Fayyoumi, A., Faris, H., Alsakran, J., & Al-Kadi, O.
“Negative Correlation Learning for Customer Churn Prediction: A
Comparison Study”. The Scientific World Journal, (2015).
Questions ?Questions ?
Thank you 

More Related Content

What's hot

Telecom Churn Prediction
Telecom Churn PredictionTelecom Churn Prediction
Telecom Churn Prediction
Anurag Mukhopadhyay
 
Data mining and analysis of customer churn dataset
Data mining and analysis of customer churn datasetData mining and analysis of customer churn dataset
Data mining and analysis of customer churn dataset
Rohan Choksi
 
Telcom churn .pptx
Telcom churn .pptxTelcom churn .pptx
Telcom churn .pptx
ResearchproGlobal
 
Telecommunication Analysis (3 use-cases) with IBM watson analytics
Telecommunication Analysis (3 use-cases) with IBM watson analyticsTelecommunication Analysis (3 use-cases) with IBM watson analytics
Telecommunication Analysis (3 use-cases) with IBM watson analytics
sheetal sharma
 
Data analytics telecom churn final ppt
Data analytics telecom churn final ppt Data analytics telecom churn final ppt
Data analytics telecom churn final ppt
Gunvansh Khanna
 
Churn Analysis in Telecom Industry
Churn Analysis in Telecom IndustryChurn Analysis in Telecom Industry
Churn Analysis in Telecom Industry
Satyam Barsaiyan
 
Churn modelling
Churn modellingChurn modelling
Churn modelling
Yogesh Khandelwal
 
Churn Prediction in Practice
Churn Prediction in PracticeChurn Prediction in Practice
Churn Prediction in Practice
BigData Republic
 
Churn customer analysis
Churn customer analysisChurn customer analysis
Churn customer analysis
Dr.Bechoo Lal
 
Customer Churn Prevention Powerpoint Presentation Slides
Customer Churn Prevention Powerpoint Presentation SlidesCustomer Churn Prevention Powerpoint Presentation Slides
Customer Churn Prevention Powerpoint Presentation Slides
SlideTeam
 
Telco churn presentation
Telco churn presentationTelco churn presentation
Telco churn presentation
Aditya Bahl
 
Customer attrition and churn modeling
Customer attrition and churn modelingCustomer attrition and churn modeling
Customer attrition and churn modeling
Mariya Korsakova
 
Predicting the e-commerce churn
Predicting the e-commerce churnPredicting the e-commerce churn
Predicting the e-commerce churn
Lviv Data Science Summer School
 
DTH Case Study
DTH Case StudyDTH Case Study
DTH Case Study
Cequity Solutions
 
Churn in the Telecommunications Industry
Churn in the Telecommunications IndustryChurn in the Telecommunications Industry
Churn in the Telecommunications Industry
skewdlogix
 
Customer churn prediction in banking
Customer churn prediction in bankingCustomer churn prediction in banking
Customer churn prediction in banking
BU - PG Master Computing Conference
 
A case study on churn analysis1
A case study on churn analysis1A case study on churn analysis1
A case study on churn analysis1Amit Kumar
 
Predicting Bank Customer Churn Using Classification
Predicting Bank Customer Churn Using ClassificationPredicting Bank Customer Churn Using Classification
Predicting Bank Customer Churn Using Classification
Vishva Abeyrathne
 
Customer Churn, A Data Science Use Case in Telecom
Customer Churn, A Data Science Use Case in TelecomCustomer Churn, A Data Science Use Case in Telecom
Customer Churn, A Data Science Use Case in Telecom
Chris Chen
 
Customer_Churn_prediction.pptx
Customer_Churn_prediction.pptxCustomer_Churn_prediction.pptx
Customer_Churn_prediction.pptx
Aniket Patil
 

What's hot (20)

Telecom Churn Prediction
Telecom Churn PredictionTelecom Churn Prediction
Telecom Churn Prediction
 
Data mining and analysis of customer churn dataset
Data mining and analysis of customer churn datasetData mining and analysis of customer churn dataset
Data mining and analysis of customer churn dataset
 
Telcom churn .pptx
Telcom churn .pptxTelcom churn .pptx
Telcom churn .pptx
 
Telecommunication Analysis (3 use-cases) with IBM watson analytics
Telecommunication Analysis (3 use-cases) with IBM watson analyticsTelecommunication Analysis (3 use-cases) with IBM watson analytics
Telecommunication Analysis (3 use-cases) with IBM watson analytics
 
Data analytics telecom churn final ppt
Data analytics telecom churn final ppt Data analytics telecom churn final ppt
Data analytics telecom churn final ppt
 
Churn Analysis in Telecom Industry
Churn Analysis in Telecom IndustryChurn Analysis in Telecom Industry
Churn Analysis in Telecom Industry
 
Churn modelling
Churn modellingChurn modelling
Churn modelling
 
Churn Prediction in Practice
Churn Prediction in PracticeChurn Prediction in Practice
Churn Prediction in Practice
 
Churn customer analysis
Churn customer analysisChurn customer analysis
Churn customer analysis
 
Customer Churn Prevention Powerpoint Presentation Slides
Customer Churn Prevention Powerpoint Presentation SlidesCustomer Churn Prevention Powerpoint Presentation Slides
Customer Churn Prevention Powerpoint Presentation Slides
 
Telco churn presentation
Telco churn presentationTelco churn presentation
Telco churn presentation
 
Customer attrition and churn modeling
Customer attrition and churn modelingCustomer attrition and churn modeling
Customer attrition and churn modeling
 
Predicting the e-commerce churn
Predicting the e-commerce churnPredicting the e-commerce churn
Predicting the e-commerce churn
 
DTH Case Study
DTH Case StudyDTH Case Study
DTH Case Study
 
Churn in the Telecommunications Industry
Churn in the Telecommunications IndustryChurn in the Telecommunications Industry
Churn in the Telecommunications Industry
 
Customer churn prediction in banking
Customer churn prediction in bankingCustomer churn prediction in banking
Customer churn prediction in banking
 
A case study on churn analysis1
A case study on churn analysis1A case study on churn analysis1
A case study on churn analysis1
 
Predicting Bank Customer Churn Using Classification
Predicting Bank Customer Churn Using ClassificationPredicting Bank Customer Churn Using Classification
Predicting Bank Customer Churn Using Classification
 
Customer Churn, A Data Science Use Case in Telecom
Customer Churn, A Data Science Use Case in TelecomCustomer Churn, A Data Science Use Case in Telecom
Customer Churn, A Data Science Use Case in Telecom
 
Customer_Churn_prediction.pptx
Customer_Churn_prediction.pptxCustomer_Churn_prediction.pptx
Customer_Churn_prediction.pptx
 

Viewers also liked

Presentation Churn Management
Presentation Churn ManagementPresentation Churn Management
Presentation Churn Managementfarhanmajeed
 
Install and Configure R and RStudio
Install and Configure R and RStudioInstall and Configure R and RStudio
Install and Configure R and RStudioKazuki Yoshida
 
Reading Data into R REVISED
Reading Data into R REVISEDReading Data into R REVISED
Reading Data into R REVISEDKazuki Yoshida
 
Análise socioloxico da animación infantil
Análise socioloxico da animación infantil Análise socioloxico da animación infantil
Análise socioloxico da animación infantil
Lucas Torres
 
Guarujá Convention & Visitors Bureau
Guarujá Convention & Visitors BureauGuarujá Convention & Visitors Bureau
Guarujá Convention & Visitors Bureau
Daniel Gravina
 
Fertilización asistida
Fertilización asistidaFertilización asistida
Fertilización asistida
Enehidy Cazares
 
ASQ section 300 Linkedin networking
ASQ section 300 Linkedin networkingASQ section 300 Linkedin networking
ASQ section 300 Linkedin networkingMary Winch
 
ESD PROPOSAL
ESD PROPOSALESD PROPOSAL
ESD PROPOSAL
dtan97
 
GMLR PPT MC 22-06-15-final
GMLR PPT MC 22-06-15-finalGMLR PPT MC 22-06-15-final
GMLR PPT MC 22-06-15-finalDurgesh Gawde
 
Angel Funding part 2
Angel Funding part 2Angel Funding part 2
Angel Funding part 2
The Capital Network
 
Morgan Lewis TCN presentation - seed and venture financing in three acts
Morgan Lewis TCN presentation - seed and venture financing in three actsMorgan Lewis TCN presentation - seed and venture financing in three acts
Morgan Lewis TCN presentation - seed and venture financing in three acts
The Capital Network
 
Breaking the data barrier: Lessons from analytically advanced Finance organiz...
Breaking the data barrier: Lessons from analytically advanced Finance organiz...Breaking the data barrier: Lessons from analytically advanced Finance organiz...
Breaking the data barrier: Lessons from analytically advanced Finance organiz...
Spencer Lin
 
HERBAL PRODUCT WITH BUSINESS OPPORTUNITY
HERBAL PRODUCT WITH BUSINESS OPPORTUNITYHERBAL PRODUCT WITH BUSINESS OPPORTUNITY
HERBAL PRODUCT WITH BUSINESS OPPORTUNITY
ABHISHEK THAKUR
 
BOT Presentation 2010
BOT Presentation 2010BOT Presentation 2010
BOT Presentation 2010Megetime
 
9 способов увеличения ‪#‎b2c‬ продаж
9 способов увеличения ‪#‎b2c‬ продаж9 способов увеличения ‪#‎b2c‬ продаж
9 способов увеличения ‪#‎b2c‬ продаж
Vladimir LUZHETSKIY
 
Installing R and R-Studio
Installing R and R-StudioInstalling R and R-Studio
Installing R and R-Studio
Syracuse University
 
EFQM European Foundation Of Quality Management - Radar Model
EFQM European Foundation Of Quality Management - Radar ModelEFQM European Foundation Of Quality Management - Radar Model
EFQM European Foundation Of Quality Management - Radar Model
Shashank Varun
 

Viewers also liked (20)

Presentation Churn Management
Presentation Churn ManagementPresentation Churn Management
Presentation Churn Management
 
Install and Configure R and RStudio
Install and Configure R and RStudioInstall and Configure R and RStudio
Install and Configure R and RStudio
 
Reading Data into R REVISED
Reading Data into R REVISEDReading Data into R REVISED
Reading Data into R REVISED
 
Casaaninha2
Casaaninha2Casaaninha2
Casaaninha2
 
Cuestionario de satisfacción tania v
Cuestionario de satisfacción tania vCuestionario de satisfacción tania v
Cuestionario de satisfacción tania v
 
Pepe-Ramnath-2
Pepe-Ramnath-2Pepe-Ramnath-2
Pepe-Ramnath-2
 
Análise socioloxico da animación infantil
Análise socioloxico da animación infantil Análise socioloxico da animación infantil
Análise socioloxico da animación infantil
 
Guarujá Convention & Visitors Bureau
Guarujá Convention & Visitors BureauGuarujá Convention & Visitors Bureau
Guarujá Convention & Visitors Bureau
 
Fertilización asistida
Fertilización asistidaFertilización asistida
Fertilización asistida
 
ASQ section 300 Linkedin networking
ASQ section 300 Linkedin networkingASQ section 300 Linkedin networking
ASQ section 300 Linkedin networking
 
ESD PROPOSAL
ESD PROPOSALESD PROPOSAL
ESD PROPOSAL
 
GMLR PPT MC 22-06-15-final
GMLR PPT MC 22-06-15-finalGMLR PPT MC 22-06-15-final
GMLR PPT MC 22-06-15-final
 
Angel Funding part 2
Angel Funding part 2Angel Funding part 2
Angel Funding part 2
 
Morgan Lewis TCN presentation - seed and venture financing in three acts
Morgan Lewis TCN presentation - seed and venture financing in three actsMorgan Lewis TCN presentation - seed and venture financing in three acts
Morgan Lewis TCN presentation - seed and venture financing in three acts
 
Breaking the data barrier: Lessons from analytically advanced Finance organiz...
Breaking the data barrier: Lessons from analytically advanced Finance organiz...Breaking the data barrier: Lessons from analytically advanced Finance organiz...
Breaking the data barrier: Lessons from analytically advanced Finance organiz...
 
HERBAL PRODUCT WITH BUSINESS OPPORTUNITY
HERBAL PRODUCT WITH BUSINESS OPPORTUNITYHERBAL PRODUCT WITH BUSINESS OPPORTUNITY
HERBAL PRODUCT WITH BUSINESS OPPORTUNITY
 
BOT Presentation 2010
BOT Presentation 2010BOT Presentation 2010
BOT Presentation 2010
 
9 способов увеличения ‪#‎b2c‬ продаж
9 способов увеличения ‪#‎b2c‬ продаж9 способов увеличения ‪#‎b2c‬ продаж
9 способов увеличения ‪#‎b2c‬ продаж
 
Installing R and R-Studio
Installing R and R-StudioInstalling R and R-Studio
Installing R and R-Studio
 
EFQM European Foundation Of Quality Management - Radar Model
EFQM European Foundation Of Quality Management - Radar ModelEFQM European Foundation Of Quality Management - Radar Model
EFQM European Foundation Of Quality Management - Radar Model
 

Similar to Churn prediction

Customer churn classification using machine learning techniques
Customer churn classification using machine learning techniquesCustomer churn classification using machine learning techniques
Customer churn classification using machine learning techniques
SindhujanDhayalan
 
Data Mining on Customer Churn Classification
Data Mining on Customer Churn ClassificationData Mining on Customer Churn Classification
Data Mining on Customer Churn Classification
Kaushik Rajan
 
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERNEVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
IRJET Journal
 
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
sangeetk072
 
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
IJDKP
 
Automated Feature Selection and Churn Prediction using Deep Learning Models
Automated Feature Selection and Churn Prediction using Deep Learning ModelsAutomated Feature Selection and Churn Prediction using Deep Learning Models
Automated Feature Selection and Churn Prediction using Deep Learning Models
IRJET Journal
 
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
Lviv IT School
 
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
IRJET Journal
 
Af4506165171
Af4506165171Af4506165171
Af4506165171
IJERA Editor
 
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORSCHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
Journal For Research
 
Predicting churn with filter-based techniques and deep learning
Predicting churn with filter-based techniques and deep learningPredicting churn with filter-based techniques and deep learning
Predicting churn with filter-based techniques and deep learning
IJECEIAES
 
Dormancy prediction model in a
Dormancy prediction model in aDormancy prediction model in a
Dormancy prediction model in a
IJDKP
 
An efficient enhanced k-means clustering algorithm for best offer prediction...
An efficient enhanced k-means clustering algorithm for best  offer prediction...An efficient enhanced k-means clustering algorithm for best  offer prediction...
An efficient enhanced k-means clustering algorithm for best offer prediction...
IJECEIAES
 
20 ccp using logistic
20 ccp using logistic20 ccp using logistic
20 ccp using logistic
Vrinda Sachdeva
 
Customer segmentation for a mobile telecommunications company based on servic...
Customer segmentation for a mobile telecommunications company based on servic...Customer segmentation for a mobile telecommunications company based on servic...
Customer segmentation for a mobile telecommunications company based on servic...
Shohin Aheleroff
 
Varsha Shanbhag - Data Science in Telecom.pptx
Varsha Shanbhag - Data Science in Telecom.pptxVarsha Shanbhag - Data Science in Telecom.pptx
Varsha Shanbhag - Data Science in Telecom.pptx
VarshaShanbhag2
 
[Big] Data For Marketers: Targeting the Right Market
[Big] Data For Marketers: Targeting the Right Market[Big] Data For Marketers: Targeting the Right Market
[Big] Data For Marketers: Targeting the Right Market
Panji Winata
 
Gc3310851089
Gc3310851089Gc3310851089
Gc3310851089
IJERA Editor
 
Gc3310851089
Gc3310851089Gc3310851089
Gc3310851089
IJERA Editor
 
IDC Technology Spotlight in collaboration with Tech Mahindra
IDC Technology Spotlight in collaboration with Tech MahindraIDC Technology Spotlight in collaboration with Tech Mahindra
IDC Technology Spotlight in collaboration with Tech Mahindra
Tech Mahindra
 

Similar to Churn prediction (20)

Customer churn classification using machine learning techniques
Customer churn classification using machine learning techniquesCustomer churn classification using machine learning techniques
Customer churn classification using machine learning techniques
 
Data Mining on Customer Churn Classification
Data Mining on Customer Churn ClassificationData Mining on Customer Churn Classification
Data Mining on Customer Churn Classification
 
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERNEVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
EVALUTION OF CHURN PREDICTING PROCESS USING CUSTOMER BEHAVIOUR PATTERN
 
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
Pinnacle digital advisors -How U.S.Telecoms Can More Effectively Convert Data...
 
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
INTEGRATION OF MACHINE LEARNING TECHNIQUES TO EVALUATE DYNAMIC CUSTOMER SEGME...
 
Automated Feature Selection and Churn Prediction using Deep Learning Models
Automated Feature Selection and Churn Prediction using Deep Learning ModelsAutomated Feature Selection and Churn Prediction using Deep Learning Models
Automated Feature Selection and Churn Prediction using Deep Learning Models
 
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
Telecom Churn Prediction from Customer Usage Data (Igor Tymchuk)
 
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
Machine Learning Approaches to Predict Customer Churn in Telecommunications I...
 
Af4506165171
Af4506165171Af4506165171
Af4506165171
 
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORSCHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
CHURN ANALYSIS AND PLAN RECOMMENDATION FOR TELECOM OPERATORS
 
Predicting churn with filter-based techniques and deep learning
Predicting churn with filter-based techniques and deep learningPredicting churn with filter-based techniques and deep learning
Predicting churn with filter-based techniques and deep learning
 
Dormancy prediction model in a
Dormancy prediction model in aDormancy prediction model in a
Dormancy prediction model in a
 
An efficient enhanced k-means clustering algorithm for best offer prediction...
An efficient enhanced k-means clustering algorithm for best  offer prediction...An efficient enhanced k-means clustering algorithm for best  offer prediction...
An efficient enhanced k-means clustering algorithm for best offer prediction...
 
20 ccp using logistic
20 ccp using logistic20 ccp using logistic
20 ccp using logistic
 
Customer segmentation for a mobile telecommunications company based on servic...
Customer segmentation for a mobile telecommunications company based on servic...Customer segmentation for a mobile telecommunications company based on servic...
Customer segmentation for a mobile telecommunications company based on servic...
 
Varsha Shanbhag - Data Science in Telecom.pptx
Varsha Shanbhag - Data Science in Telecom.pptxVarsha Shanbhag - Data Science in Telecom.pptx
Varsha Shanbhag - Data Science in Telecom.pptx
 
[Big] Data For Marketers: Targeting the Right Market
[Big] Data For Marketers: Targeting the Right Market[Big] Data For Marketers: Targeting the Right Market
[Big] Data For Marketers: Targeting the Right Market
 
Gc3310851089
Gc3310851089Gc3310851089
Gc3310851089
 
Gc3310851089
Gc3310851089Gc3310851089
Gc3310851089
 
IDC Technology Spotlight in collaboration with Tech Mahindra
IDC Technology Spotlight in collaboration with Tech MahindraIDC Technology Spotlight in collaboration with Tech Mahindra
IDC Technology Spotlight in collaboration with Tech Mahindra
 

Recently uploaded

The affect of service quality and online reviews on customer loyalty in the E...
The affect of service quality and online reviews on customer loyalty in the E...The affect of service quality and online reviews on customer loyalty in the E...
The affect of service quality and online reviews on customer loyalty in the E...
jerlynmaetalle
 
SOCRadar Germany 2024 Threat Landscape Report
SOCRadar Germany 2024 Threat Landscape ReportSOCRadar Germany 2024 Threat Landscape Report
SOCRadar Germany 2024 Threat Landscape Report
SOCRadar
 
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
ukgaet
 
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdfSample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
Linda486226
 
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
vcaxypu
 
Tabula.io Cheatsheet: automate your data workflows
Tabula.io Cheatsheet: automate your data workflowsTabula.io Cheatsheet: automate your data workflows
Tabula.io Cheatsheet: automate your data workflows
alex933524
 
一比一原版(BU毕业证)波士顿大学毕业证成绩单
一比一原版(BU毕业证)波士顿大学毕业证成绩单一比一原版(BU毕业证)波士顿大学毕业证成绩单
一比一原版(BU毕业证)波士顿大学毕业证成绩单
ewymefz
 
Empowering Data Analytics Ecosystem.pptx
Empowering Data Analytics Ecosystem.pptxEmpowering Data Analytics Ecosystem.pptx
Empowering Data Analytics Ecosystem.pptx
benishzehra469
 
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
axoqas
 
FP Growth Algorithm and its Applications
FP Growth Algorithm and its ApplicationsFP Growth Algorithm and its Applications
FP Growth Algorithm and its Applications
MaleehaSheikh2
 
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
NABLAS株式会社
 
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
ewymefz
 
Malana- Gimlet Market Analysis (Portfolio 2)
Malana- Gimlet Market Analysis (Portfolio 2)Malana- Gimlet Market Analysis (Portfolio 2)
Malana- Gimlet Market Analysis (Portfolio 2)
TravisMalana
 
一比一原版(YU毕业证)约克大学毕业证成绩单
一比一原版(YU毕业证)约克大学毕业证成绩单一比一原版(YU毕业证)约克大学毕业证成绩单
一比一原版(YU毕业证)约克大学毕业证成绩单
enxupq
 
Criminal IP - Threat Hunting Webinar.pdf
Criminal IP - Threat Hunting Webinar.pdfCriminal IP - Threat Hunting Webinar.pdf
Criminal IP - Threat Hunting Webinar.pdf
Criminal IP
 
Business update Q1 2024 Lar España Real Estate SOCIMI
Business update Q1 2024 Lar España Real Estate SOCIMIBusiness update Q1 2024 Lar España Real Estate SOCIMI
Business update Q1 2024 Lar España Real Estate SOCIMI
AlejandraGmez176757
 
Opendatabay - Open Data Marketplace.pptx
Opendatabay - Open Data Marketplace.pptxOpendatabay - Open Data Marketplace.pptx
Opendatabay - Open Data Marketplace.pptx
Opendatabay
 
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
nscud
 
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
Subhajit Sahu
 
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
correoyaya
 

Recently uploaded (20)

The affect of service quality and online reviews on customer loyalty in the E...
The affect of service quality and online reviews on customer loyalty in the E...The affect of service quality and online reviews on customer loyalty in the E...
The affect of service quality and online reviews on customer loyalty in the E...
 
SOCRadar Germany 2024 Threat Landscape Report
SOCRadar Germany 2024 Threat Landscape ReportSOCRadar Germany 2024 Threat Landscape Report
SOCRadar Germany 2024 Threat Landscape Report
 
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
一比一原版(UVic毕业证)维多利亚大学毕业证成绩单
 
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdfSample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
Sample_Global Non-invasive Prenatal Testing (NIPT) Market, 2019-2030.pdf
 
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
一比一原版(RUG毕业证)格罗宁根大学毕业证成绩单
 
Tabula.io Cheatsheet: automate your data workflows
Tabula.io Cheatsheet: automate your data workflowsTabula.io Cheatsheet: automate your data workflows
Tabula.io Cheatsheet: automate your data workflows
 
一比一原版(BU毕业证)波士顿大学毕业证成绩单
一比一原版(BU毕业证)波士顿大学毕业证成绩单一比一原版(BU毕业证)波士顿大学毕业证成绩单
一比一原版(BU毕业证)波士顿大学毕业证成绩单
 
Empowering Data Analytics Ecosystem.pptx
Empowering Data Analytics Ecosystem.pptxEmpowering Data Analytics Ecosystem.pptx
Empowering Data Analytics Ecosystem.pptx
 
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
哪里卖(usq毕业证书)南昆士兰大学毕业证研究生文凭证书托福证书原版一模一样
 
FP Growth Algorithm and its Applications
FP Growth Algorithm and its ApplicationsFP Growth Algorithm and its Applications
FP Growth Algorithm and its Applications
 
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
【社内勉強会資料_Octo: An Open-Source Generalist Robot Policy】
 
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
一比一原版(UMich毕业证)密歇根大学|安娜堡分校毕业证成绩单
 
Malana- Gimlet Market Analysis (Portfolio 2)
Malana- Gimlet Market Analysis (Portfolio 2)Malana- Gimlet Market Analysis (Portfolio 2)
Malana- Gimlet Market Analysis (Portfolio 2)
 
一比一原版(YU毕业证)约克大学毕业证成绩单
一比一原版(YU毕业证)约克大学毕业证成绩单一比一原版(YU毕业证)约克大学毕业证成绩单
一比一原版(YU毕业证)约克大学毕业证成绩单
 
Criminal IP - Threat Hunting Webinar.pdf
Criminal IP - Threat Hunting Webinar.pdfCriminal IP - Threat Hunting Webinar.pdf
Criminal IP - Threat Hunting Webinar.pdf
 
Business update Q1 2024 Lar España Real Estate SOCIMI
Business update Q1 2024 Lar España Real Estate SOCIMIBusiness update Q1 2024 Lar España Real Estate SOCIMI
Business update Q1 2024 Lar España Real Estate SOCIMI
 
Opendatabay - Open Data Marketplace.pptx
Opendatabay - Open Data Marketplace.pptxOpendatabay - Open Data Marketplace.pptx
Opendatabay - Open Data Marketplace.pptx
 
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
一比一原版(CBU毕业证)卡普顿大学毕业证成绩单
 
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
Algorithmic optimizations for Dynamic Levelwise PageRank (from STICD) : SHORT...
 
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
Innovative Methods in Media and Communication Research by Sebastian Kubitschk...
 

Churn prediction

  • 1. Computational IntelligenceComputational Intelligence methods for churn predictionmethods for churn prediction in telecommunicationin telecommunication companiescompanies Hossam Faris, PhD Associate Professor Business Information Technology Department King Abdullah II School for Information Technology The University of Jordan hossam.faris@ju.edu.jo 7ossam@gmail.com
  • 2. IntroductionIntroduction The market is very dynamic and highly competitive. It is very easy for customers to switch from one service provider to another for a better price rates or service quality. Telecommunication companies suffer a loss of 20-40% of their customers every year!
  • 3. IntroductionIntroduction • Companies are aware that attracting new customers is much more costly than keeping current customers. • Companies in the telecommunication market realize that customers are the most important asset for them.
  • 4. What isWhat is customer churncustomer churn ?? In business, “customer churn” is a term commonly refers to customers who stop using some services or terminate their contract and subscription with a company to switch to another competitor. Customer churn has many reasons and factors. Such reasons include quality and cost of services.
  • 5. Churn management and predictionChurn management and prediction The goal of churn management is to keep current customers as long as the company is alive in the market. Revenue comes from the creation and maintaining long-term relationships with the customers. A better churn management can help Customer Relationship Management (CRM) in decision making and establishing effective customer retention campaigns.
  • 6. The targetThe target • We need to identify (predict) those customers who are probably will leave. • Specific marketing campaigns could be designed to target the most risky customer segments. • Special discounts and subscriptions could be offered.
  • 7. From where to start ?From where to start ? Detecting a churn by observation is almost impossible. Traditional surveys based on running questionnaires or interviews suffer from a high cost, limited access to customer population and data self-reporting Telecom companies realize that their existing customer database is the key. Service providers started to invest more in data mining techniques that can aid in having an efficient churn prediction models
  • 8. ChallengesChallenges The available data is imbalanced. Different cost for each class. High number of related variables. BigData
  • 9. Customer related featuresCustomer related features Feature name Description  3G The subscriber is provided with 3G service (Yes, No) Total Consumption (con) Total monthly fees (calling +SMS) in (JD) Calling fees Total monthly calling fees (JD) Local SMS fees Monthly local SMS fees(JD) Int. calling fees Monthly fees for international calling (JD) Local SMS count Number of monthly local SMS Int. SMS count Number of monthly international SMS Int. MOU Total of international outgoing calls in minutes Total MOU Total minutes of use for all outgoing calls On net MOU Minutes of use for on-net-outgoing calls Churn Churning customer status (Yes, No)
  • 10. Research linesResearch lines  The state-of-art basic classifiers approaches: create or modify the algorithms that exist for churn prediction.  Data level approaches: add a preprocessing step where the data distribution is rebalanced in order to decrease the effect of the skewed class distribution in the learning process. Ensembles of classifiers each ensemble is a group of classifiers trained independently then all their predictions are combines. Ensemble classifier proofed to have better generalization and outperform single classifiers.
  • 11. 1.Basic classifiers approach1.Basic classifiers approach Examples: The multilayer Perceptron (MLP)
  • 13. Identifying important variables inIdentifying important variables in MLPMLP
  • 14. Change on Error (CoE)Change on Error (CoE)
  • 16. Identifying important variables inIdentifying important variables in MLPMLP During the evolutionary cycle of GP, input features that help GP in improving the fitness value of the generated individuals will survive while the weak the features will be excluded and disappear from the remaining generations.
  • 17. Variable Frequency in GPVariable Frequency in GP
  • 18. 2.Data level approaches2.Data level approaches This approach is performed on two stages: Cleaning the data : A clustering method is used to identify different behavior patterns of customers. Small and unrepresentative data are treated as outliers and noise. So they are eliminated. Modeling: A classification technique is applied to develop the final prediction model.
  • 20. Self Organizing Maps (SOM)Self Organizing Maps (SOM)
  • 23. 3.Ensembles of classifiers3.Ensembles of classifiers • NCL is an ensemble learning technique that encourages diversity explicitly among ensemble members through their negative correlation • Negative correlation Learning based on MLP networks
  • 25. Future workFuture work Investigating the application of cost- sensitive methods in churn prediction. It is very interesting to study the most influencing factors that affect customer churn in different regions.
  • 26. Published researchPublished research • Faris, Hossam, Bashar Al-Shboul, and Nazeeh Ghatasheh. "A genetic programming based framework for churn prediction in telecommunication industry." Computational Collective Intelligence. Technologies and Applications. Springer International Publishing, (2014). • Rodan, Ali, Faris, Hossam and others. "A support vector machine approach for churn prediction in telecom industry." International Information Institute (Tokyo). Information17.8 (2014): 3961. • Faris, Hossam. "Neighborhood cleaning rules and particle swarm optimization for predicting customer churn behavior in telecom industry."International Journal of Advanced Science and Technology 68 (2014): 11-22. • Rodan, A., Fayyoumi, A., Faris, H., Alsakran, J., & Al-Kadi, O. “Negative Correlation Learning for Customer Churn Prediction: A Comparison Study”. The Scientific World Journal, (2015).