CFP last date
20 May 2024
Reseach Article

Article:Applying Data Mining to Customer Churn Prediction in an Internet Service Provider

by Afaq Alam Khan, Sanjay Jamwal, M.M.Sepehri
International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 9 - Number 7
Year of Publication: 2010
Authors: Afaq Alam Khan, Sanjay Jamwal, M.M.Sepehri
10.5120/1400-1889

Afaq Alam Khan, Sanjay Jamwal, M.M.Sepehri . Article:Applying Data Mining to Customer Churn Prediction in an Internet Service Provider. International Journal of Computer Applications. 9, 7 ( November 2010), 8-14. DOI=10.5120/1400-1889

@article{ 10.5120/1400-1889,
author = { Afaq Alam Khan, Sanjay Jamwal, M.M.Sepehri },
title = { Article:Applying Data Mining to Customer Churn Prediction in an Internet Service Provider },
journal = { International Journal of Computer Applications },
issue_date = { November 2010 },
volume = { 9 },
number = { 7 },
month = { November },
year = { 2010 },
issn = { 0975-8887 },
pages = { 8-14 },
numpages = {9},
url = { https://ijcaonline.org/archives/volume9/number7/1400-1889/ },
doi = { 10.5120/1400-1889 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2024-02-06T19:57:59.402549+05:30
%A Afaq Alam Khan
%A Sanjay Jamwal
%A M.M.Sepehri
%T Article:Applying Data Mining to Customer Churn Prediction in an Internet Service Provider
%J International Journal of Computer Applications
%@ 0975-8887
%V 9
%N 7
%P 8-14
%D 2010
%I Foundation of Computer Science (FCS), NY, USA
Abstract

A business incurs much higher charges when attempting to win new customers than to retain existing ones. As a result, much research has been invested into new ways of identifying those customers who have a high risk of churning. However, customer retention efforts have also been costing organizations large amounts of resources. Same is the situation in ISP industry in I.R.Iran. Exploiting the use of demographic, billing and usage data, this study tends to identify the best churn predictors on the one hand and evaluates the accuracy of different data mining techniques on the other. Clustering users as per their usage features and incorporating that cluster membership information in classification models is another aspect which has been addressed in this study

References
  1. (2005). General Overview of the ICT in Iran. Tunis, World Summit on the information society (WSIS).
  2. Au, T., Li, S., and Ma, G., (2003). "Applying and Evaluating to Predict Customer Attrition Using Data Mining Techniques." Journal of Comparative International management 6(1).
  3. Au, W.-H., Chan, K. C. C., and Yao, X., (2003). "A Novel Evolutionary DataMining Algorithm With Application to Churn Prediction." IEEE Transactions on Evolutionary Computation 7(6): 532-545.
  4. Baesens, B., Verstraeten, G., Van den Poel, D., Egmont-Peterson, M., Van Kenhove, P., and Vanthienen, J., (2004). “Bayesian network classifiers for identifying the slope of the customer lifecycle of long life customers.” European Journal of Operational Research 165: 508-523.
  5. Berry, J. A., and Linoff, G. S., (2004). Data Mining Techniques For Marketing, Sales, and Customer Relationship Management. USA, Wiley.
  6. Burez, J., and Van den Poel, D., (2006). "CRM at a pay-TV company: Using analytical models to reduce customer attrition by targeted marketing for subscription services." Expert Systems With Applications 101: 512-524.
  7. Chae, Y. M., Hee Ho, S., Won Cho, K., Lee, D. H., and Ha Ji, S., (2001). “Data mining approach to policy analysis in a health insurance domain.” International journal for Medical Informatics 62: 103-111.
  8. Chiang, D.-A., Wang Y.-F, and Lee, S.,-L., (2003). "Goal-oriented sequential pattern for network banking churn analysis." Expert System with Applications 25: 293-302.
  9. Chiou, Jyh-Shen., (2003). “The antecedents of customers’ loyalty toward Internet Service provider”. Information & Management 41: 685-695
  10. Daskalaki, S., Kopanas, I., Goudara, M., and Avouris, N., (2002). "Data mining for decision support on customer insolvency in telecommunication business." European Journal of Operational research 145(10): 239-255.
  11. Gappert, C., (2002). "Customer Churn in the Communications Industry." A KPMG LLP white paper, U.S member of KPMG International.
  12. Hadden, J., Tiwari, A., Roy, R., and Ruta, D., (2005). "Computer assisted customer churn management: Stat-of-the-art and future trends." Computers & Operations Research 10(2): 139-158.
  13. Han, J., Kamber, M., (2003). Data Mining: Concepts and Techniques, Morgan Kaufmann.
  14. Hsieh, Nan-Chen., (2004). “An integrated data mining and behavioral scoring model for analyzing bank customers.” Expert Systems with Applications 27: 623-633.
  15. Hung, S., -Y., and Wang, H.-Y., (2004). Applying Data Mining to Telecom Churn Management. Proceedings of third annual conference, Pacific Asia Conference on Information Systems, Taiwan.
  16. Hwang, H., (2004). "An LTV model and customer segmentation based on customer value: a case study on the wireless telecommunications industry." Expert Systems with Applications 26: 103-120.
  17. Kim, H.-S., and Yoon, C.-H., (2004). "Determinants of subscriber churn and customer loyalty in the Korean mobile telephony market." Telecommunication Policy 28(6): 751-765.
  18. Lariviere, B., and Van den Poel, D., (2004). "Investigating the role of product features in preventing customer churn by using survival analysis and choice modeling: The case of financial services." Expert Systems with Applications 27(2): 277-285.
  19. Li, S.-T., Shue, L.-Y., and Lee, S.-F., (2005). "Enabling Customer Relationship Management in ISP Services Through Mining Usage Patterns." Expert System with Applications 100(23): 1-12.
  20. Madden, G., Scott J. S., and Cobel-Neal, G., (1999). "Subscriber Churn in Australian ISP Market." Information Economics and policy 11(12): 195-207.
  21. Malhotra, R., Malhotra, D. K., (2003). “Evaluating consumer loans using neural networks.” International journal of management science 31: 83-96.
  22. McKay, H., (2005). "Development of contractual relationship between an ISP and its customers - Is a fairer deal in sight?" Computer Law and Security Report 21: 216-225.
  23. Minguel, A. P. M. L., (2005). "Measuring the impact of data mining on churn management." Internet Research: Electronic Network Applications and Policy 11(5): 375-387.
  24. Mitra, S., Acharya, T., (2003). Data Mining: Multimedia, Soft Computing, and Bioinformatics. USA, John Wiley & Sons.
  25. Ng, K., Liu, H., (2001). "Customer Retention Via Data Mining." Issues on the Application of data Mining: 569-590.
  26. Prinzie, A., Van den Poel, D., (2005). “ Incorporating sequential information into traditional classification models by using an element/position-sensitive SAM”. Decision Support Systems.
  27. Van den Poel, D., (2003). "Predicting Mail-Order Repeat Buying: Which Variables Matter?" Tijdschrift voor Economie and management 48(3): 371-403.
  28. Van Den Poel, D., Lariviere, B., (2003). “Customer attrition analysis for financial services using proportional hazard models.” European Journal of Operational Research 157: 196-217.
  29. Verhoef, P. C., Donkers, B., (2001). “Predicting customer potential value an application in the insurance industry.” Decision Support System 32: 189-199.
  30. Wei, C.-P., and Chiu, I.-T., (2002). "Turning telecommunications call details to churn prediction: a data mining approach." Expert Systems with Applications 23(10): 103-112.
  31. Yan, L., Wolniewicz, R. H., and Dodier, R., (2004). "Predicting Customer Behavior in Telecommunications." IEEE Intelligent Systems: 50-58.
  32. Bart Lariviere and Dirk Van Den Poel (2004), “Investigating the post-complaint period by means of survival analysis”, Volume 29 , Issue 3,667-668
  33. Shen-Tun Li, shu ching kuo , “ Knowledge discovery in financial investment for forecasting and trading strategy through wavelet-based SOM networks”, Expert Systems with applications, 34(2): 935-951
  34. Jyh-Shen Chiou (2004), “ The antecedents of consumers loytality towards Internet Service Provider ”, Information & Management, 41(6): 685 – 695
  35. Ding-An Chaing et. al. (2003), “ A recommender system to avoid customer churn ”, Expert systems with applications, 36(4): 8071-8075
Index Terms

Computer Science
Information Sciences

Keywords

ISP Churn Data mining Decision tree Regression Neural network