Improved churn prediction in telecommunication industry using data mining techniques

To survive in today's telecommunication business it is imperative to distinguish customers who are not reluctant to move toward a competitor. Therefore, customer churn prediction has become an essential issue in telecommunication business. In such competitive business a reliable customer predictor will be regarded priceless. This paper has employed data mining classification techniques including Decision Tree, Artificial Neural Networks, K-Nearest Neighbors, and Support Vector Machine so as to compare their performances. Using the data of an Iranian mobile company, not only were these techniques experienced and compared to one another, but also we have drawn a parallel between some different prominent data mining software. Analyzing the techniques' behavior and coming to know their specialties, we proposed a hybrid methodology which made considerable improvements to the value of some of the evaluations metrics. The proposed methodology results showed that above 95% accuracy for Recall and Precision is easily achievable. Apart from that a new methodology for extracting influential features in dataset was introduced and experienced. (C) 2014 Elsevier B.V. All rights reserved.