Predictive Algorithm for Churn analysis

[Former Member]

Hi,

Can anybody help me with the algorithm which I can use for churn analysis?

Thanks,

Atul

[Former Member]

Hi Atul,

If you are not familiar with these algorithms, you can alternatively use SAP InfiniteInsight which is less about algorithms and more about answering questions.

To use it, you will need a target variable which is the churn flag (yes or no, the person has cancelled a contract) and input variables to describe the customer behaviour.

The component in SAP InfiniteInsight to use is Classification/Regression. It is very straightforward to use.

Armelle

[AndreasForster]

Hi,

and this webinar (to be held on 25 September 2014) will explain the SAP InfiniteInsight approach further

- how to identify clients at risk of churning in the first place

- and how can you try to prevent them from churning

ASUG.com - Events

Greetings

Andreas

[former_member184912]

Hi Atul,

For Churn analysis or what is usually referred to as a binary classification problem where the customer is either staying or leaving=churning I would suggest one of the following algorithms:

CNR Decision Tree - which also provides a decision tree to explain which feature split is influencing the target (churn) the most.

You could also chose one of the R based Neural Network algorithms, however the produced predictive model & results are usually hard to explain.

If need be you can enhance the number of available algorithms by adding you own R functions - there are a lot of examples in this community.

If you have SAP HANA you could also chose:

Decision Trees:C4.5, CHAID or CART (new in SAP HANA SP08).

Other supervised learning algorithms for binary classification: Naive Bayes or SVM (Support Vector Machine).

There are a lot more but this should get you started.

Best regards,

Kurt Holst

[Former Member]

Thank you Kurt.

A lot to read....Let me figure out what will suit my business case of telecom industry.

Thanks,

Atul