PREDICTION OF CUSTOMER ATTRITION PREDICTION USING MLP AND RANDOM FOREST IN THETELECOMMUNICATION INDUSTRY)
Attrition refers to the cancelling/terminating a subscription from a particular organisation due to various reasons like poor customer service,high charges etc.
A customer is considered the most important asset in any business setting.An increase in customers means an increase to the organizations profit.However,acquiring of a new customer is more costly than retaining an existing one since different expenses like credit searching,advertising and promotional expenses are incurred.
It has developed into an industry wide belief that the best core marketing strategy for the future is to retain existing customers by trying to identify customers who are likely to churn and providing special promotional programmes to prevent them from churning.
However,if churn predictions are inaccurate companies will waste a lot of money on the customer retention strategies.This study aims to identify factors that highly influence churning and identify the model with the best performance in order to ensure accurate churn predictions.