INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 10, ISSUE 01, JANUARY 2021 ISSN 2277-8616
388
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Customer Churn Prediction in Telecom Sector: A
Survey and way a head
Ibrahim AlShourbaji, Na Helian, Yi Sun, Mohammed Alhameed
Abstract—The telecommunication (telecom)industry is a highly technological domain has rapidly developed over the previous decades as
a result of the commercial success in mobile communication and the internet. Due to the strong competition in the telecom industry market,
companies use a business strategy to better understand their customers’ needs and measure their satisfaction. This helps telecom
companies to improve their retention power and reduces the probability to churn. Knowing the reasons behind customer churn and the use
of Machine Learning (ML) approaches for analyzing customers' information can be of great value for churn management. This paper aims
to study the importance of Customer Churn Prediction (CCP) and recent research in the field of CCP. Challenges and open issues that
need further research and development to CCP in the telecom sector are explored.
Index Terms— Customer churn, prediction, machine learning, churn management, telecom
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1 INTRODUCTION
Customers seek good service quality and competitive pricing
factors in telecom sector. However, when these factors are
missing, then they can easily leave to another competitor in
the market [1]. This has led telecom to offer some incentives
to customers to encourage them to stay [2].
The movement of customers (i.e., subscribers) from one
service provider or carrier to another is called customer
churn, It has been recognized that long-standing consumers
are more lucrative in the long term, as new clients are
engrossed by persuasive offers and incline to switch to an
alternative competitor in the market at the moment they
obtain a better concession [3-7], and therefore it is vital for
companies to consider churn management as a part of
Companies use CRM as a strategy to modify their process
management, to improve their revenues and to find new
approaches by primarily focusing on customers’ needs to
avoid losing them rather than a product [13, 14]. These
specifics have led competitive companies to capitalize on CRM
to up-hold their customers, and thus helping to increase
customer strength. Figure 1 shows the main sections of CRM
[15].
Collaborative CRM: It aims to establish customized
relationships with customers using several ways such
as emails, telephone, websites, call centers, face-to-face
contact, etc.
Operative CRM: This type offers services for the
organizations to increase the efficiency of CRM
processes
Analytical CRM: focuses on data collection and
analysis to help the management build strategic
decisions and plan for the future.
Fig 1.CRM areas
The data of customers are stored in such CRM systems which
can then be transformed into valuable information with the
help of ML techniques which aid telecom companies to
formulate new polices, develop campaigns for existing clients
and figure out the main reasons behind customer churn. In
this way, companies can easily observe their customer’s
behavior from time to time and manage them effectively.
Therefore, ML approaches are needed in telecom sectors
which remain the corner-stone of customer churn control and
can play a fundamental role in decreasing the probability of
churners.
Due to the increased amount of data collection, organization
and companies can store vast amount of data and information
using several types of storage technologies at low cost.
However, the challenge is to analyze, summarize and discover
knowledge from these stored data. ML and statistics aiming at
automatically discovering useful information and identifying
hidden patterns in large data warehouses. ML involves few
phases from raw data collection to some of the interesting
patterns and this process includes data cleaning,
transformation, selection and evaluation
It has been reported that attracting new customers’ in the
telecom sector, costs six times more than retaining existing
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Ibrahim AlShourbaji, Na Helian and Yi Sun, School of Computer Science,
University of Hertfordshire, Hatfield, U.K,
Ibrahim AlShourbaji, Department of Computer and Network Engineering,
Jazan University, 82822-6649 Jazan, Kingdom of Saudi
Mohammed Alhameed, Department of Computer Science, Jazan University,
82822-6649 Jazan, Kingdom of Saudi Arabia
Email: alshourbajiibrahim@gmail.com