Negative Correlation Learning for Customer Churn Prediction: A Comparison Study

Recently, telecommunication companies have been paying more attention toward the problem of identification of customer churn behavior. In business, it is well known for service providers that attracting new customers is much more expensive than retaining existing ones. Therefore, adopting accurate m...

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Bibliographic Details
Main Authors: Ali Rodan, Ayham Fayyoumi, Hossam Faris, Jamal Alsakran, Omar Al-Kadi
Format: Article
Language:English
Published: Wiley 2015-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2015/473283
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Summary:Recently, telecommunication companies have been paying more attention toward the problem of identification of customer churn behavior. In business, it is well known for service providers that attracting new customers is much more expensive than retaining existing ones. Therefore, adopting accurate models that are able to predict customer churn can effectively help in customer retention campaigns and maximizing the profit. In this paper we will utilize an ensemble of Multilayer perceptrons (MLP) whose training is obtained using negative correlation learning (NCL) for predicting customer churn in a telecommunication company. Experiments results confirm that NCL based MLP ensemble can achieve better generalization performance (high churn rate) compared with ensemble of MLP without NCL (flat ensemble) and other common data mining techniques used for churn analysis.
ISSN:2356-6140
1537-744X