Improving prediction of customer behavior in nonstationary environments

L. Yan, D. J. Miller, M. C. Mozer, R. Wolniewicz

    Research output: Contribution to conferencePaper

    28 Scopus citations

    Abstract

    Customer churn, switching from one service provider to another, costs the wireless telecommunications industry $4 billion each year in North America and Europe. To proactively build lasting relationships with customers, it is thus crucial to predict customer behavior. Machine learning has been applied to churn prediction, using historical data such as usage, billing, customer service, and demographics. However, because customer behavior is often nonstationary, training a model based on data extracted from a window of time in the past yields poor performance on the present. We propose two distinct approaches, using more historical data or new, unlabeled data, to improve the results for this real-world, large-scale, nonstationary problem. A new ensemble classification method, with combination weights learned from both labeled and unlabeled data, is also proposed, and it outperforms Bagging and Mixture of Experts.

    Original languageEnglish (US)
    Pages2258-2263
    Number of pages6
    StatePublished - Jan 1 2001
    EventInternational Joint Conference on Neural Networks (IJCNN'01) - Washington, DC, United States
    Duration: Jul 15 2001Jul 19 2001

    Other

    OtherInternational Joint Conference on Neural Networks (IJCNN'01)
    CountryUnited States
    CityWashington, DC
    Period7/15/017/19/01

    All Science Journal Classification (ASJC) codes

    • Software
    • Artificial Intelligence

    Fingerprint Dive into the research topics of 'Improving prediction of customer behavior in nonstationary environments'. Together they form a unique fingerprint.

  • Cite this

    Yan, L., Miller, D. J., Mozer, M. C., & Wolniewicz, R. (2001). Improving prediction of customer behavior in nonstationary environments. 2258-2263. Paper presented at International Joint Conference on Neural Networks (IJCNN'01), Washington, DC, United States.