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Growing Science » Management Science Letters » Customer churn prediction using a hybrid method and censored data

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Management Science Letters
ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 3 Issue 5 pp. 1345-1352, 2013

Customer churn prediction using a hybrid method and censored data Pages 1345-1352 PDF Download PDF

Authors: Bahram Bahmani, Golshan Mohammadi, Mehrdad Mohammadi, Reza Tavakkoli-Moghaddam

📋 Author Affiliations:
Bahram Bahmani ORCID 1, Golshan Mohammadi ORCID 1, Mehrdad Mohammadi ORCID 2, Reza Tavakkoli-Moghaddam ORCID 3
1 Masters of Financial Management, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
2 PhD Student, Department of Industrial Engineering, Faculty of Engineering, University of Tehran, Tehran, Iran
3 Department of Industrial Engineering, Faculty of Engineering, University of Tehran, Tehran, Iran
doi 10.5267/j.msl.2013.04.017
9 Source: Scopus
Crossref Source: CrossRef

🔑 Keywords: Customer relationship, Customer churn prediction, management, Neural network

Abstract: Customers are believed to be the main part of any organization’s assets and customer retention as well as customer churn management are important responsibilities of organizations. In today’s competitive environment, organization must do their best to retain their existing customers since attracting new customers cost significantly more than taking care of existing ones. In this paper, we present a hybrid method based on neural network and Cox regression analysis where neural network is used for outlier data and Cox regression method is implemented for prediction of future events. The proposed model of this paper has been implemented on some data and the results are compared based on five criteria including prediction accuracy, errors’ type I and II, root mean square error and mean absolute deviation. The preliminary results indicate that the proposed model of this paper performs better than alternative methods.

How to cite this paper
APA: Bahmani, B., Mohammadi, G., Mohammadi, M & Tavakkoli-Moghaddam, R. (2013). Customer churn prediction using a hybrid method and censored data. Management Science Letters, 3(5), 1345-1352.
Chicago/Turabian: Bahmani, B., Mohammadi, G., Mohammadi, M & Tavakkoli-Moghaddam, R. 2013. "Customer churn prediction using a hybrid method and censored data." Management Science Letters 3, no. 5 (2013): 1345-1352.
AMA: Bahmani, B., Mohammadi, G., Mohammadi, M & Tavakkoli-Moghaddam, R. Customer churn prediction using a hybrid method and censored data. Management Science Letters. 2013;3(5):1345-1352.

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📚 Journal: Management Science Letters | 📅 Year: 2013 | 📖 Volume: 3 | 📄 Issue: 5 | 👁️ Views: 3550 | 📊 Crossref:

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