Blended Churn Predictive System for Quadruple-Patterned Churn Classification Towards Effective Customer Behavioural Management

The adoption of product centric approach to customer acquisition by many subscriber based companies has become a factor, which influences customer misclassification in existing churn predictive models. While the transaction volume, velocity, and varieties for basic churn processes continues to increase exponentially, every customer remained a potential churner to a certain degree. Although, existing churn prediction models classifies customers as churner or non-churner, many of its approaches assign equal weight to features while the customer’s power of influence from socio-transactional data mining are neglected in churn behaviour management. Here, the developed Churn Predictive System is a composite of Recency-Frequency-Monetary-Influence model through customer segmentation management and Fuzzy-Weighed Feature Engineering model, which trained and tested transactional records using Random Forest and Adaboost Ensemble Learning in a 5-fold cross validation protocol. This System was coupled (Customer Segmentation + Ensemble Learning) to achieve a quadrupled customer’s churn category as Churner, Potential Churner, Inertia Customer and Premium Customers. The results from the developed system juxtapose the need for a new approach to churn prediction in customer behavioural management.