Churn classification model for local telecommunication company based on rough set theory

Abstract

Customer care plays an important role in a company especially in managing churn for Telecommunication Company. Churn is perceived as the behaviour of a customer to leave or to terminate a service. This behaviour causes the loss of profit to companies because acquiring new customer requires higher investment compared to retaining existing ones. Thus, it is necessary to consider an efficient classification model to reduce the rate of churn. Hence, the purpose of this paper is to propose a new classification model based on the Rough Set Theory to classify customer churn. The results of the study show that the proposed Rough Set classification model outperforms the existing models and contributes to significant accuracy improvement.

Keywords: customer churn; classification model; telecommunication industry; data mining;
rough set.