journal article·2022-09-18Open access

An Intelligent Hybrid Scheme for Customer Churn Prediction Integrating Clustering and Classification Algorithms

Rencheng Liu, Saqib Ali, Syed Fakhar Bilal, Zareen Sakhawat, Azhar Imran, Abdullah Almuhaimeed, Abdulkareem Alzahrani, Guangmin Sun

Applied Sciences· Volume 12· Issue 18

Abstract

Nowadays, customer churn has been reflected as one of the main concerns in the processes of the telecom sector, as it affects the revenue directly. Telecom companies are looking to design novel methods to identify the potential customer to churn. Hence, it requires suitable systems to overcome the growing churn challenge. Recently, integrating different clustering and classification models to develop hybrid learners (ensembles) has gained wide acceptance. Ensembles are getting better approval in the domain of big data since they have supposedly achieved excellent predictions as compared to single classifiers. Therefore, in this study, we propose a customer churn prediction (CCP) based on ensemble system fully incorporating clustering and classification learning techniques. The proposed churn prediction model uses an ensemble of clustering and classification algorithms to improve CCP model performance. Initially, few clustering algorithms such as k-means, k-medoids, and Random are employed to test churn prediction datasets. Next, to enhance the results hybridization technique is applied using different ensemble algorithms to evaluate the performance of the proposed system. Above mentioned clustering algorithms integrated with different classifiers including Gradient Boosted Tree (GBT), Decision Tree (DT), Random Forest (RF), Deep Learning (DL), and Naive Bayes (NB) are evaluated on two standard telecom datasets which were acquired from Orange and Cell2Cell. The experimental result reveals that compared to the bagging ensemble technique, the stacking-based hybrid model (k-medoids-GBT-DT-DL) achieve the top accuracies of 96%, and 93.6% on the Orange and Cell2Cell dataset, respectively. The proposed method outperforms conventional state-of-the-art churn prediction algorithms.
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Customer churn and segmentation · Consumer Retail Behavior Studies · Customer Service Quality and Loyalty

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

School of Electronic Information Engineering, Changchun University of Science and Technology, Changchun 130022, China

Faculty of Information Technology, Beijing University of Technology, Beijing 100124, China

Computer Science Department, Federal Urdu University of Arts, Science and Technology, Islamabad 44000, Pakistan

Department of Creative Technologies, Faculty of Computing & Artifical Intelligence, Air University, Islamabad 44000, Pakistan

The National Centre for Genomics Technologies and Bioinformatics, King Abdulaziz City for Science and Technology, Riyadh 11442, Saudi Arabia

Computer Engineering and Science Department, Faculty of Computer Science and Information Technology, Al Baha University, Al Baha 11442, Saudi Arabia

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