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An efficient churn prediction model using gradient boosting machine and metaheuristic optimization.

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This study introduces an Enhanced Gradient Boosting Model (EGBM) for telecommunications churn prediction. The EGBM significantly improves prediction accuracy compared to traditional models, offering a robust solution for customer retention.

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Area of Science:

  • Data Science
  • Machine Learning
  • Telecommunications Analytics

Background:

  • Customer churn presents a significant challenge in the telecommunications sector.
  • Effective churn prediction (CP) models are crucial for customer retention strategies.

Purpose of the Study:

  • To introduce an Enhanced Gradient Boosting Model (EGBM) for improved customer churn prediction.
  • To enhance the learning process of Gradient Boosting Machines (GBM) using a novel base learner and optimization technique.

Main Methods:

  • Developed an EGBM utilizing Support Vector Machine with Radial Basis Function kernel (SVM_RBF) as a base learner.
  • Implemented an exponential loss function to improve GBM learning.
  • Utilized a modified Particle Swarm Optimization (PSO) with Artificial Ecosystem Optimization (AEO) for hyper-parameter tuning.
  • Evaluated the model on seven open-source CP datasets using quantitative metrics.

Main Results:

  • The CP-EGBM demonstrated significantly superior performance compared to traditional GBM and SVM models.
  • Statistical validation using the Friedman ranking test confirmed the model's effectiveness.
  • Comparative analysis showed promising improvements over state-of-the-art churn prediction models.

Conclusions:

  • The proposed CP-EGBM is a robust and effective solution for churn prediction in telecommunications.
  • The novel combination of SVM_RBF base learner and optimized PSO enhances predictive accuracy.
  • The EGBM offers a valuable tool for telecommunication companies aiming to reduce customer attrition.