Customer churn detection system: Identifying customers who wish to leave a merchant

Abstract

Identifying customers with a higher probability to leave a merchant (churn customers) is a challenging task for sellers. In this paper, we propose a system able to detect churner behavior and to assist merchants in delivering special offers to their churn customers. Two main goals lead our work: on the one hand, the definition of a classifier in order to perform churn analysis and, on the other hand, the definition of a framework that can be enriched with social information supporting the merchant in performing marketing actions which can reduce the probability of losing those customers. Experimental results of an artificial and a real datasets show an increased value of accuracy of the classification when random forest or decision tree are considered. © 2013 Springer-Verlag.