Predicting Customer Churn in Telecom Industry using MLP Neural Networks Essay

Predicting Customer Churn in Telecom Industry using MLP Neural Networks Essay

Length: 1995 words (5.7 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Most of telecommunication companies consider the customer as the most important asset for them. For that reason, nowadays, a challenging problem that encounters telecommunication companies is when the customer leaves the company to another service provider for a reason or another [1]. In most cases, this churn can happen in rates which seriously affect the profitability of the companies since it is easy for the customers to switch companies.
In market, where the competition between the telecommunication companies grows rapidly, companies have shifted their focus from acquiring new customers to retain their existing ones [1–3]. Basically, churn is one of these significant problems and companies started to seek new Business Intelligence (BI) applications that predict churn customers. When the company is aware of the percentage of customers who leave for another company in a given time period, it wouldbe easier to come up with a detailed analysis of the causesfor the churn rate and understand the behavior of customersthat unsubscribe and move to other business competitor. Thishelps in planning effective customer retention strategies for that company [4].
Among many approaches developed in the literature for predicting customer churn, supervised Machine Learning (ML) techniques are the most widely investigated [5–9]. Supervised ML concerns the developing of models whichcan learn from labeled data. ML includes a wide rangeof algorithms such as Decision trees, k-nearest neighbors,Linear regression, Naive Bayes, Neural networks, Supportvector machines (SVM), Genetic Programming and many others.
For example, in [5] authors conducted a comparative analysis of linear regression and two machine learning techniques; neural netwo...

... middle of paper ...

...95, 2013.
S.-Y. Hung, D. C. Yen, and H.-Y. Wang, “Applying data miningto telecom churn management,” Expert Systems with Applications,vol. 31, no. 3, pp. 515–524, 2006.
P. C. Pendharkar, “Genetic algorithm based neural network approachesfor predicting churn in cellular wireless network services,” Expert Syst.Appl., vol. 36, pp. 6714–6720, Apr. 2009.
Joseph P. Bigus. 1996. Data Mining with Neural Networks: Solving Business Problems from Application Development to Decision Support. McGraw-Hill, Inc., Hightstown, NJ, USA.
L. V. Fausett, Fundamentals of Neural Networks: Architectures, Algorithms, and Applications. Prentice Hall, 1994.
A. SUNG, “Ranking importance of input parameters of neural networks,” Expert Systems with Applications, vol. 15, no. 3--4, pp. 405 – 411, 1998.
G. D. Garson, “Interpreting neural-network connection weights,” AI Expert, 1991,pp. 47-51.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Customer Churn Analysis in the Telecommunication Industry Essay

- Abstract— Customer churn is a business term used to describe the loss of customer. It describes those customers or clients who leave or switch to competitors. In the telecommunication industry, customers have multiple choices of services and they frequently switch from one service to another. In this competitive market, customers demand best products and services at low prices, while service providers constantly focus on getting hold of as their business goals. So that’s why there is very higher rate of customer churn in telecommunications industry experiences an average of 30-35% annual churn rate....   [tags: Business Management ]

Term Papers
3076 words (8.8 pages)

Essay about Quantum Neural Network

- ... This has been demonstrated by many quantum 1.2. QUANTUM MECHANICS AND ANN 3 Figure 1.2: Quantum analogies for di erent concepts of arti cial neural networks algorithms such as Grover's search algorithm, Shor's factorisation algorithm etc. We can use this property and our knowledge of classical neural net- works to create a new computing paradigm called quantum neural networks (QNNs). There are many ways of using building a QNN. Figure 1.2 has been taken from [2], which shows various approaches to achieving For the purpose of this chapter will will consider only the Menneer and Narayanan model....   [tags: the human brain, artificial neural networks]

Term Papers
1015 words (2.9 pages)

Essay on Neural Prosthetics

- Memory Storage Requires Neuronal Remodeling In introducing the term synapse, a researcher by the name of Charles Sherrington speculated that synaptic alterations might be the basis of learning and memory storage, anticipating an area of research that to this day is one of the most intensive efforts in all of neuroscience (Alberini, 2011). Modern ideas about neural plasticity have their origins in the theories of Donald Hebb, who proposed that when a pre-synaptic and a post-synaptic neuron are repeatedly activated together, the synaptic connection between them will become stronger and more stable in order to form long term memories....   [tags: neural remodeling, synapse]

Term Papers
1832 words (5.2 pages)

Marketing Analysis : Churn Modeling Essay

- What is the difference in between the churn, response, uplift, uplift churn modeling. Churn Modeling The churn modeling is prognostic modeling and it is a tool that is utilized to outline the stages and steps of the customer churn or a customer leaving your products or services. This tool delivers you the consciousness and calculable metrics to contest beside in your retention struggles and deprived of this tool you would be acting on comprehensive expectations, not a data ambitious model that reproduces on how your consumers really act....   [tags: Forecasting, Future, Model, Prediction]

Term Papers
821 words (2.3 pages)

A Neural Network Primer Essay example

- A Neural Network Primer This paper gives the basics of the subject of neural networks. It is recommended for those new to the subject of neural networks and only assumes that the reader has a knowledge of basic algebra. Please feel free to distribute this paper as you wish but please distribute the entire paper without deletions and limit your corrections and additions to the space below the bottom line after the last paragraph of the original text. If you wish for your correction or modification to be changed in the body of the original text, please send your recommendation to one of my computer addresses above....   [tags: Neural Network Primer Essays]

Free Essays
4852 words (13.9 pages)

Using Transhumanism to Expand Beyond Human Limitations Essay

- One of the most enduring drives of man is to overcome itself: to break out of self-imposed limits which are used paradoxically to define our world. Transhumanism is one of these drives. It takes our use of emerging technologies to be an unnatural, albeit necessary, extension of our collective will through which we can move beyond being merely “human”. The creation of neural networks is us sharing our fruit of knowledge with machine in order to expand beyond our limitations without losing what makes us human....   [tags: computers, neural, technology]

Term Papers
1010 words (2.9 pages)

Human Age Estimation from Facial Images Using Artificial Neural Network Essay

- ... Proposed Approach We have used MLP backpropagation algorithm in our neural network. The steps followed in the process of estimating age are shown in Fig. 1. . Fig. 1. Steps in age estimation process We input face image to our system. The validation of this image needs to be done manually. Validation of image is done such that frontal view of face is visible so as to extract the features accurately. After validating image, we extract face features from it. Features are 68 pair of (x,y) co-ordinates....   [tags: identity, gender oreintation, being normal]

Term Papers
1916 words (5.5 pages)

Essay about Neural Networks

- Neural Network Neural Network, highly interconnected network of information-processing elements that mimics the connectivity and functioning of the human brain. Neural networks are a form of multiprocessor computer system, with · Simple processing elements · A high degree of interconnection · Simple scalar messages · Adaptive interaction between elements Where can neural network systems help. · Where we can't formulate an algorithmic solution. · Where we can get lots of examples of the behavior we require....   [tags: Neural Network Computers Technology]

Free Essays
1695 words (4.8 pages)

Speaker identification and verification over short distance telephone lines using artificial neural networks

- SPEAKER IDENTIFICATION AND VERIFICATION OVER SHORT DISTANCE TELEPHONE LINES USING ARTIFICIAL NEURAL NETWORKS Ganesh K Venayagamoorthy, Narend Sunderpersadh, and Theophilus N Andrew Electronic Engineering Department, M L Sultan Technikon, P O Box 1334, Durban, South Africa. ABSTRACT Crime and corruption have become rampant today in our society and countless money is lost each year due to white collar crime, fraud, and embezzlement. This paper presents a technique of an ongoing work to combat white-collar crime in telephone transactions by identifying and verifying speakers using Artificial Neural Networks (ANNs)....   [tags: essays research papers]

Term Papers
2884 words (8.2 pages)

Neural Interfacing Essay

- Neural Interfacing In the motion picture “RoboCop” scientists during a future time implanted a human head into the body of a futuristic robot creating an almost unstoppable police officer. During 1987, when this movie was produced, the idea of man combining with machine was considered pure fantasy. However, advances in technology in the year 2000 and further studies in recent years have proven that this idea may, in time, become a reality. On October 13th 2003, in their article, Monkeys Consciously Control A Robot Arm Using Only Brain Signals, reported that researchers of Duke University had successfully taught a monkey to manipulate a robotic arm using only her brain sign...   [tags: essays papers]

Term Papers
1136 words (3.2 pages)