Classifying variety of customer's online engagement for churn prediction with mixed-penalty logistic regression
以混合惩罚逻辑回归分类客户在线参与特征并预测流失AI 解读 ↓
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AI 根据所提供的论文材料归类:摘要将逻辑回归用于通用客户流失分类,未提出经济离散选择模型或其他所列计量问题,故分类证据不足。
以混合惩罚逻辑回归分类客户在线参与特征并预测流失AI 解读 ↓
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Using big data to analyze consumer behavior can provide effective decision-making tools for preventing customer attrition (churn) in customer relationship management (CRM). Focusing on a CRM dataset with several different categories of factors that impact customer heterogeneity (i.e., usage of self-care service channels, duration of service, and responsiveness to marketing actions), we provide new predictive analytics of customer churn rate based on a machine learning method that enhances the classification of logistic regression by adding a mixed penalty term. The proposed penalized logistic regression can prevent overfitting when dealing with big data and minimize the loss function when balancing the cost from the median (absolute value) and mean (squared value) regularization. We show the analytical properties of the proposed method and its computational advantage in this research. In addition, we investigate the performance of the proposed method with a CRM data set (that has a large number of features) under different settings by efficiently eliminating the disturbance of (1) least important features and (2) sensitivity from the minority (churn) class. Our empirical results confirm the expected performance of the proposed method in full compliance with the common classification criteria (i.e., accuracy, precision, and recall) for evaluating machine learning methods.