Implementing machine learning techniques for customer retention and churn prediction in telecommunications

Abstract

This review paper explores the application of machine learning techniques in predicting customer churn and enhancing customer retention within the telecommunications industry. The paper begins by discussing the significance of customer churn, its causes, and the limitations of traditional churn prediction methods. It then delves into machine learning algorithms, including decision trees, support vector machines, and ensemble methods. It highlights their effectiveness in handling large and complex datasets typical of the telecom sector. The discussion extends to the challenges faced in data quality, model selection, implementation, and ethical considerations in using customer data for predictive analytics. The paper also compares machine learning models with traditional methods, emphasizing the advantages of scalability, accuracy, and real-time processing. Furthermore, it identifies potential innovations, such as improved data integration, interpretable models, and personalized retention strategies. Finally, the paper reflects on future trends, predicting the growing role of AI and machine learning in telecommunications, particularly in customer service automation and network optimization. The review underscores the importance of adopting machine learning to reduce churn and improve customer retention while considering the field's ethical implications and future opportunities. Keywords: Customer Churn Prediction, Machine Learning, Telecommunications, Customer Retention, Predictive Analytics, AI in Telecom