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Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm

Customer churn has become a big problem for telecommunication companies. Preventive efforts are needed by predicting the value of churn in the future. This study uses data mining techniques with decision tree algorithms to predict customer churn in one of Indonesian Telecommunication companies. Th...

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Main Authors: Ramadhanti,, Darin, Larasati, Aisyah, Muid, Abdul, Mohamad, Effendi
Format: Conference or Workshop Item
Language:English
Published: 2023
Online Access:http://eprints.utem.edu.my/id/eprint/27857/1/Building%20customer%20churn%20prediction%20models%20in%20Indonesian%20telecommunication%20company%20using%20decision%20tree%20algorithm.pdf
http://eprints.utem.edu.my/id/eprint/27857/
https://pubs.aip.org/aip/acp/article-abstract/2654/1/040001/2869364/Building-customer-churn-prediction-models-in
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spelling my.utem.eprints.278572024-09-20T08:52:35Z http://eprints.utem.edu.my/id/eprint/27857/ Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm Ramadhanti,, Darin Larasati, Aisyah Muid, Abdul Mohamad, Effendi Customer churn has become a big problem for telecommunication companies. Preventive efforts are needed by predicting the value of churn in the future. This study uses data mining techniques with decision tree algorithms to predict customer churn in one of Indonesian Telecommunication companies. The best decision tree model has parameters of criterion information gain with a minimal gain = 0.01 and a max depth = 6. This decision tree model has an accuracy value of 78.28% with 19,6% customer churn rate. Based on this model, customers of this company tend to have voluntary churns. Some important factors that affect customer churn are type of contract, number of monthly downloads, tenure, customer satisfaction value, and add on. The type of contract has the highest impact on the customer churn in this company. Based on the results, the company is suggested to promote a retention program based in order to decrease customer churn rate. 2023 Conference or Workshop Item PeerReviewed text en http://eprints.utem.edu.my/id/eprint/27857/1/Building%20customer%20churn%20prediction%20models%20in%20Indonesian%20telecommunication%20company%20using%20decision%20tree%20algorithm.pdf Ramadhanti,, Darin and Larasati, Aisyah and Muid, Abdul and Mohamad, Effendi (2023) Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm. In: 7th International Conference on Science and Technology, ICST 2021, 7 September 2021through 8 September 2021, Yogyakarta. https://pubs.aip.org/aip/acp/article-abstract/2654/1/040001/2869364/Building-customer-churn-prediction-models-in
institution Universiti Teknikal Malaysia Melaka
building UTEM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknikal Malaysia Melaka
content_source UTEM Institutional Repository
url_provider http://eprints.utem.edu.my/
language English
description Customer churn has become a big problem for telecommunication companies. Preventive efforts are needed by predicting the value of churn in the future. This study uses data mining techniques with decision tree algorithms to predict customer churn in one of Indonesian Telecommunication companies. The best decision tree model has parameters of criterion information gain with a minimal gain = 0.01 and a max depth = 6. This decision tree model has an accuracy value of 78.28% with 19,6% customer churn rate. Based on this model, customers of this company tend to have voluntary churns. Some important factors that affect customer churn are type of contract, number of monthly downloads, tenure, customer satisfaction value, and add on. The type of contract has the highest impact on the customer churn in this company. Based on the results, the company is suggested to promote a retention program based in order to decrease customer churn rate.
format Conference or Workshop Item
author Ramadhanti,, Darin
Larasati, Aisyah
Muid, Abdul
Mohamad, Effendi
spellingShingle Ramadhanti,, Darin
Larasati, Aisyah
Muid, Abdul
Mohamad, Effendi
Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
author_facet Ramadhanti,, Darin
Larasati, Aisyah
Muid, Abdul
Mohamad, Effendi
author_sort Ramadhanti,, Darin
title Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
title_short Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
title_full Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
title_fullStr Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
title_full_unstemmed Building customer churn prediction models in Indonesian telecommunication company using decision tree algorithm
title_sort building customer churn prediction models in indonesian telecommunication company using decision tree algorithm
publishDate 2023
url http://eprints.utem.edu.my/id/eprint/27857/1/Building%20customer%20churn%20prediction%20models%20in%20Indonesian%20telecommunication%20company%20using%20decision%20tree%20algorithm.pdf
http://eprints.utem.edu.my/id/eprint/27857/
https://pubs.aip.org/aip/acp/article-abstract/2654/1/040001/2869364/Building-customer-churn-prediction-models-in
_version_ 1811599513741164544
score 13.211869

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