Case studies in applying data mining for churn analysis

Lomax, S; Vadera, S

Abstract

The advent of price and product comparison sites now makes it even more important to retain customers and identify those that might be at risk of leaving. The use of data mining methods has been widely advocated for predicting customer churn. This paper presents two
case studies that utilize decision tree learning methods to develop models for predicting churn for a software company. The first case study aims to predict churn for organizations which currently have an ongoing project, to determine if organizations are likely to continue
with other projects. While the second case study presents a more traditional example, where the aim is to predict organizations likely to cease being a subscriber to a service. The case studies include presentation of the accuracy of the models using a standard methodology as
well as comparing the results with what happened in practice. Both case studies show the significant savings that can be made, plus potential increase in revenue by using decision tree learning for churn analysis.

Citation

Lomax, S., & Vadera, S. (2017). Case studies in applying data mining for churn analysis. International Journal of Conceptual Structures and Smart Applications, 5(2), 22-33. https://doi.org/10.4018/ijcssa.2017070102

• Journal Article Type: Article
• Acceptance Date: Jul 10, 2017
• Publication Date: Oct 1, 2017
• Deposit Date: Oct 24, 2017
• Publicly Available Date: Oct 24, 2017
• Journal: International Journal of Conceptual Structures and Smart Applications
• Print ISSN: 2166-7292
• Electronic ISSN: 2166-7306
• Publisher: IGI Global
• Volume: 5
• Issue: 2
• Pages: 22-33
• DOI: https://doi.org/10.4018/ijcssa.2017070102
• Publisher URL: http://dx.doi.org/10.4018/ijcssa.2017070102
• Related Public URLs: https://www.igi-global.com/journal/international-journal-conceptual-structures-smart/54917
• Additional Information: Additional Information : This paper appears in the International Journal of Conceptual Structures and Smart Applications, edited by Simon Polovina and Simon Andrews. Copyright 2017 IGI Global, www.igi-global.com. Posted with permission of the publisher.