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Article
Just-in-time Customer Churn Prediction: With and Without Data Transformation
2018 IEEE Congress on Evolutionary Computation, CEC 2018 - Proceedings
  • Adnan Amin, Center for Excellence in Information Technology
  • Babar Shah, Zayed University
  • Asad Masood Khattak, Zayed University
  • Thar Baker, Liverpool John Moores University
  • Hamood Ur Rahman Durani, Center for Excellence in Information Technology
  • Sajid Anwar, Center for Excellence in Information Technology
Document Type
Conference Proceeding
Publication Date
9-28-2018
Abstract

© 2018 IEEE. Telecom companies are facing a serious problem of customer churn due to exponential growth in the use of telecommunication based services and the fierce competition in the market. Customer churns are the customers who decide to quit or switch use of the service or even company and join another competitor. This problem can affect the revenues and reputation of the telecom company in the business market. Therefore, many Customer Churn Prediction (CCP) models have been developed; however these models, mostly study in the context of within company CCP. Therefore, these models are not suitable for a situation where the company is newly established or have recently adopted the use of advanced technology or have lost the historical data relating to the customers. In such scenarios, Just-In-Time (JIT) approach can be a more practical alternative for CCP approach to address this issue in cross-company instead of within company churn prediction. This paper has proposed a JIT approach for CCP. However, JIT approach also needs some historical data to train the classifier. To cover this gap in this study, we built JIT-CCP model using Cross-company concept (i.e., when one company (source) data is used as training set and another company (target) data is considered for testing purpose). To support JIT-CCP, the cross-company data must be carefully transformed before being applied for classification. The objective of this paper is to provide an empirical comparison and effect of with and without state-of-the-art data transformation methods on the proposed JIT-CCP model. We perform experiments on publicly available benchmark datasets and utilize Naive Bayes as an underlying classifier. The results demonstrated that the data transformation methods improve the performance of the JIT-CCP significantly. Moreover, when using well-known data transformation methods, the proposed model outperforms the model learned by using without data transformation methods.

ISBN
9781509060177
Publisher
Institute of Electrical and Electronics Engineers Inc.
Disciplines
Keywords
  • cross-company,
  • customer churn prediction,
  • data filter,
  • just-in-time,
  • log transformation,
  • rank transformation
Scopus ID
85054009549
Indexed in Scopus
Yes
Open Access
No
https://doi.org/10.1109/CEC.2018.8477954
Citation Information
Adnan Amin, Babar Shah, Asad Masood Khattak, Thar Baker, et al.. "Just-in-time Customer Churn Prediction: With and Without Data Transformation" 2018 IEEE Congress on Evolutionary Computation, CEC 2018 - Proceedings (2018) - 6
Available at: http://works.bepress.com/asad-khattak/57/