Data mining models in telecom churn prediction

Abstract

Customer attrition has become one of the biggest problems facing the telecommunications industry due to its fast growth. According to telecom studies, acquiring new customers is more expensive than keeping current ones. Telecom companies may use the information gleaned from telecom data to understand the causes behind customer churn and take steps to maintain their current clientele. This study explores the popular data mining methods for spotting trends in loss of clients. Principal component analysis is used in the survey to reduce the dimension of the attributes. Some conclusions about the relationship between costumer usage data their churn can be summarized through the exploratory data analysis. And three prediction techniques (Logistic Regression, SVM Regression, Random Forest Regression) are applied in the customer churn prediction. This paper compares the accuracy and performance of these models. The result shows, among these models, SVM regression has the highest accuracy. It has an accuracy of 0.92 and a precision of 0.48.