Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping

In recent years, the telecom market has been very competitive. The cost of retaining existing telecom customers is lower than attracting new customers. It is necessary for a telecom company to understand customer churn through customer relationship management (CRM). Therefore, CRM analyzers are requ...

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Main Authors: Tianpei Xu, Ying Ma, Kangchul Kim
Format: Article
Language:English
Published: MDPI AG 2021-05-01
Series:Applied Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3417/11/11/4742
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author Tianpei Xu
Ying Ma
Kangchul Kim
author_facet Tianpei Xu
Ying Ma
Kangchul Kim
author_sort Tianpei Xu
collection DOAJ
description In recent years, the telecom market has been very competitive. The cost of retaining existing telecom customers is lower than attracting new customers. It is necessary for a telecom company to understand customer churn through customer relationship management (CRM). Therefore, CRM analyzers are required to predict which customers will churn. This study proposes a customer-churn prediction system that uses an ensemble-learning technique consisting of stacking models and soft voting. Xgboost, Logistic regression, Decision tree, and Naïve Bayes machine-learning algorithms are selected to build a stacking model with two levels, and the three outputs of the second level are used for soft voting. Feature construction of the churn dataset includes equidistant grouping of customer behavior features to expand the space of features and discover latent information from the churn dataset. The original and new churn datasets are analyzed in the stacking ensemble model with four evaluation metrics. The experimental results show that the proposed customer churn predictions have accuracies of 96.12% and 98.09% for the original and new churn datasets, respectively. These results are better than state-of-the-art churn recognition systems.
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spelling doaj.art-d03acf432e8546afaf21f822a54fa6672023-11-21T20:49:00ZengMDPI AGApplied Sciences2076-34172021-05-011111474210.3390/app11114742Telecom Churn Prediction System Based on Ensemble Learning Using Feature GroupingTianpei Xu0Ying Ma1Kangchul Kim2Department of Computer Engineering, Chonnam National Unversity, Yeosu 59626, KoreaDepartment of Computer Engineering, Chonnam National Unversity, Yeosu 59626, KoreaDepartment of Computer Engineering, Chonnam National Unversity, Yeosu 59626, KoreaIn recent years, the telecom market has been very competitive. The cost of retaining existing telecom customers is lower than attracting new customers. It is necessary for a telecom company to understand customer churn through customer relationship management (CRM). Therefore, CRM analyzers are required to predict which customers will churn. This study proposes a customer-churn prediction system that uses an ensemble-learning technique consisting of stacking models and soft voting. Xgboost, Logistic regression, Decision tree, and Naïve Bayes machine-learning algorithms are selected to build a stacking model with two levels, and the three outputs of the second level are used for soft voting. Feature construction of the churn dataset includes equidistant grouping of customer behavior features to expand the space of features and discover latent information from the churn dataset. The original and new churn datasets are analyzed in the stacking ensemble model with four evaluation metrics. The experimental results show that the proposed customer churn predictions have accuracies of 96.12% and 98.09% for the original and new churn datasets, respectively. These results are better than state-of-the-art churn recognition systems.https://www.mdpi.com/2076-3417/11/11/4742customer churnCRMmachine learningensemble learningfeature grouping
spellingShingle Tianpei Xu
Ying Ma
Kangchul Kim
Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
Applied Sciences
customer churn
CRM
machine learning
ensemble learning
feature grouping
title Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
title_full Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
title_fullStr Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
title_full_unstemmed Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
title_short Telecom Churn Prediction System Based on Ensemble Learning Using Feature Grouping
title_sort telecom churn prediction system based on ensemble learning using feature grouping
topic customer churn
CRM
machine learning
ensemble learning
feature grouping
url https://www.mdpi.com/2076-3417/11/11/4742
work_keys_str_mv AT tianpeixu telecomchurnpredictionsystembasedonensemblelearningusingfeaturegrouping
AT yingma telecomchurnpredictionsystembasedonensemblelearningusingfeaturegrouping
AT kangchulkim telecomchurnpredictionsystembasedonensemblelearningusingfeaturegrouping