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XGBoost-Based E-Commerce Customer Loss Prediction.
1School of Economics and Trade, Anhui Vocational College of Defense Technology, Lu'an 237011, China.
This study introduces an improved XGBoost algorithm to predict e-commerce customer churn, significantly enhancing prediction accuracy. Segmenting customers before prediction further boosts performance, aiding customer retention strategies.
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Area of Science:
- Data Science
- Machine Learning
- E-commerce Analytics
Background:
- The proliferation of mobile internet has led industries to adopt new technologies, increasing user engagement scenarios.
- Identifying potential customer churn is crucial for businesses aiming to reduce customer loss.
- Accurate prediction of customer attrition is essential for effective business strategy.
Purpose of the Study:
- To develop and validate an effective method for predicting customer churn in e-commerce.
- To improve the accuracy and reduce errors in customer loss prediction models.
- To compare the performance of an improved XGBoost algorithm against other classification methods.
Main Methods:
- An improved XGBoost algorithm was developed and applied to Chinese e-commerce customer data.
- Customer data was analyzed both with and without segmentation.
- The performance of the improved XGBoost model was compared with existing classification algorithms.
Main Results:
- The improved XGBoost algorithm demonstrated higher accuracy, reducing Type I errors by 2.8%.
- Customer segmentation before prediction significantly improved model performance, decreasing Type I errors by 10.8% and increasing accuracy by 7.8% for core value customers.
- The improved XGBoost algorithm outperformed other classification algorithms in AUC, accuracy, and other key indicators.
Conclusions:
- The improved XGBoost algorithm is highly effective for predicting e-commerce customer churn.
- Customer segmentation enhances the accuracy of churn prediction models.
- Findings provide valuable insights for e-commerce customer service strategies and decision-making.

