A Fuzzy Rule-based Learning Algorithm for Customer Churn Prediction

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Title: A Fuzzy Rule-based Learning Algorithm for Customer Churn Prediction
Authors: Huang, Bingquan
Huang, Ying
Chen, Chong Cheng
Kechadi, Tahar
Permanent link: http://hdl.handle.net/10197/7856
Date: 17-Jul-2016
Abstract: Customer churn has emerged as a critical issue for Customer Relationship Management and customer retention in the telecommunications industry, thus churn prediction is necessary and valuable to retain the customers and reduce the losses. Recently rule-based classification methods designed transparently interpreting the classification results are preferable in customer churn prediction. However most of rulebased learning algorithms designed with the assumption of well-balanced datasets, may provide unacceptable prediction results. This paper introduces a Fuzzy Association Rule-based Classification Learning Algorithm for customer churn prediction. The proposed algorithm adapts CAIM discretization algorithm to obtain fuzzy partitions, then searches a set of rules using an assessment method. The experiments were carried out to validate the proposed approach using the customer services dataset of Telecom. The experimental results show that the proposed approach can achieve acceptable prediction accuracy and efficient for churn prediction.
Funding Details: European Commission - Seventh Framework Programme (FP7)
Type of material: Conference Publication
Publisher: Springer
Copyright (published version): 2016 Springer
Keywords: Optimisation & Decision AnalyticsFuzzy rulesChurn predictionRule-based classification
DOI: 10.1007/978-3-319-41561-1_14
Language: en
Status of Item: Peer reviewed
Is part of: Perner, P. (ed.). Proceedings of the 16th Industrial Conference on Data Mining (ICDM 2016), New York, United States, 13-17 July 2016
Conference Details: 16th Industrial Conference on Data Mining (ICDM 2016), New York, United States, 13-17 July 2016
Appears in Collections:Computer Science Research Collection
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