Hierarchical Neural Regression Models for Customer Churn Prediction

As customers are the main assets of each industry, customer churn prediction is becoming a major task for companies to remain in competition with competitors. In the literature, the better applicability and efficiency of hierarchical data mining techniques has been reported. This paper considers three hierarchical models by combining four different data mining techniques for churn prediction, which are backpropagation artificial neural networks (ANN), self-organizing maps (SOM), alpha-cut fuzzy c-means (α-FCM), and Cox proportional hazards regression model. The hierarchical models are ANN

[1]  James M. Keller,et al.  A possibilistic fuzzy c-means clustering algorithm , 2005, IEEE Transactions on Fuzzy Systems.

[2]  Jian Yu,et al.  Alpha-Cut Implemented Fuzzy Clustering Algorithms and Switching Regressions , 2008, IEEE Transactions on Systems, Man, and Cybernetics, Part B (Cybernetics).

[3]  John Edwards,et al.  Personalised online sales using web usage data mining , 2007, Comput. Ind..

[4]  Jun Guo,et al.  An extended support vector machine forecasting framework for customer churn in e-commerce , 2011, Expert Syst. Appl..

[5]  Bart Baesens,et al.  Modeling churn using customer lifetime value , 2009, Eur. J. Oper. Res..

[6]  T. Kohonen Adaptive, associative, and self-organizing functions in neural computing. , 1987, Applied optics.

[7]  Parag C. Pendharkar A comparison of gradient ascent, gradient descent and genetic-algorithm-based artificial neural networks for the binary classification problem , 2007, Expert Syst. J. Knowl. Eng..

[8]  Stefan Lessmann,et al.  A reference model for customer-centric data mining with support vector machines , 2009, Eur. J. Oper. Res..

[9]  Chih-Fong Tsai,et al.  Market segmentation based on hierarchical self-organizing map for markets of multimedia on demand , 2008, Expert Syst. Appl..

[10]  Ling Li,et al.  ADTreesLogit model for customer churn prediction , 2009, Ann. Oper. Res..

[11]  Babak Nadjar Araabi,et al.  Locally linear neurofuzzy modeling and prediction of geomagnetic disturbances based on solar wind conditions , 2006 .

[12]  Bart Baesens,et al.  New insights into churn prediction in the telecommunication sector: A profit driven data mining approach , 2012, Eur. J. Oper. Res..

[13]  Sudhir Nanda,et al.  A misclassification cost-minimizing evolutionary–neural classification approach , 2006 .

[14]  J. C. Dunn,et al.  A Fuzzy Relative of the ISODATA Process and Its Use in Detecting Compact Well-Separated Clusters , 1973 .

[15]  Dirk Van den Poel,et al.  CRM at a pay-TV company: Using analytical models to reduce customer attrition by targeted marketing for subscription services , 2007, Expert Syst. Appl..

[16]  Y. Ilker Topcu,et al.  Applying Bayesian Belief Network approach to customer churn analysis: A case study on the telecom industry of Turkey , 2011, Expert Syst. Appl..

[17]  Kristof Coussement,et al.  Faculteit Economie En Bedrijfskunde Hoveniersberg 24 B-9000 Gent Churn Prediction in Subscription Services: an Application of Support Vector Machines While Comparing Two Parameter-selection Techniques Churn Prediction in Subscription Services: an Application of Support Vector Machines While Comparin , 2022 .

[18]  Kristof Coussement,et al.  Integrating the voice of customers through call center emails into a decision support system for churn prediction , 2008, Inf. Manag..

[19]  Stephen Grossberg,et al.  A What-and-Where fusion neural network for recognition and tracking of multiple radar emitters , 2001, Neural Networks.

[20]  James L. McClelland,et al.  Parallel distributed processing: explorations in the microstructure of cognition, vol. 1: foundations , 1986 .

[21]  R. Suganya,et al.  Data Mining Concepts and Techniques , 2010 .

[22]  Dirk Van den Poel,et al.  Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting , 2005, Eur. J. Oper. Res..

[23]  Dirk Van den Poel,et al.  Customer attrition analysis for financial services using proportional hazard models , 2004, Eur. J. Oper. Res..

[24]  Bart Baesens,et al.  Faculteit Economie En Bedrijfskunde Hoveniersberg 24 B-9000 Gent Bayesian Network Classifiers for Identifying the Slope of the Customer Lifecycle of Long-life Customers Bayesian Network Classifiers for Identifying the Slope of the Customer Lifecycle of Long-life Customers , 2022 .

[25]  Chih-Fong Tsai,et al.  Customer churn prediction by hybrid neural networks , 2009, Expert Syst. Appl..

[26]  Jian Yu,et al.  Optimality test for generalized FCM and its application to parameter selection , 2005, IEEE Transactions on Fuzzy Systems.

[27]  Geoffrey E. Hinton,et al.  Learning internal representations by error propagation , 1986 .

[28]  Parag C. Pendharkar,et al.  An empirical study of impact of crossover operators on the performance of non-binary genetic algorithm based neural approaches for classification , 2004, Comput. Oper. Res..

[29]  Li Xiu,et al.  Application of data mining techniques in customer relationship management: A literature review and classification , 2009, Expert Syst. Appl..

[30]  張 毓騰,et al.  APPLYING DATA MINING TO TELECOM CHURN MANAGEMENT , 2009 .

[31]  A. Keramati,et al.  Churn analysis for an Iranian mobile operator , 2011 .

[32]  Anil K. Jain,et al.  Data clustering: a review , 1999, CSUR.

[33]  M. Tahar Kechadi,et al.  Customer churn prediction in telecommunications , 2012, Expert Syst. Appl..

[34]  Miin-Shen Yang,et al.  Alternative c-means clustering algorithms , 2002, Pattern Recognit..