• Title/Summary/Keyword: Customer Chum Prediction

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Analyzing Customer Management Data by Data Mining: Case Study on Chum Prediction Models for Insurance Company in Korea

  • Cho, Mee-Hye;Park, Eun-Sik
    • Journal of the Korean Data and Information Science Society
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    • v.19 no.4
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    • pp.1007-1018
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    • 2008
  • The purpose of this case study is to demonstrate database-marketing management. First, we explore original variables for insurance customer's data, modify them if necessary, and go through variable selection process before analysis. Then, we develop churn prediction models using logistic regression, neural network and SVM analysis. We also compare these three data mining models in terms of misclassification rate.

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Development of churn prediction model in a newspaper based on real case (사례를 기반으로 한 신문 산업에서의 고객 이탈 예측 모형 구축)

  • Yang, Seung-Jeong;Rhee, Jong Tae
    • Journal of the Korea Safety Management & Science
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    • v.9 no.3
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    • pp.111-118
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    • 2007
  • What is CRM(Customer Relationship Management) means that planning, executing, and re-accessing the marketing strategy based on the customer character by analyzing the material related to customers. That is CRM is a strategy of customer service on the base of data. In the case of the telecommunications and a newspaper, there are restricted application of CRM, because they are provided services by paying a given amount of money within a given period of time. This paper develops CRM model(chum prediction model) that can apply to a newspaper. For model-building, real data were used which were collected from one of the major a newspaper company in Korea. Also, this paper verifies the efficient result.

Customer Churn Prediction of Automobile Insurance by Multiple Models (다중모델을 이용한 자동차 보험 고객의 이탈예측)

  • LeeS Jae-Sik;Lee Jin-Chun
    • Journal of Intelligence and Information Systems
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    • v.12 no.2
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    • pp.167-183
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    • 2006
  • Since data mining attempts to find unknown facts or rules by dealing with also vaguely-known data sets, it always suffers from high error rate. In order to reduce the error rate, many researchers have employed multiple models in solving a problem. In this research, we present a new type of multiple models, called DyMoS, whose unique feature is that it classifies the input data and applies the different model developed appropriately for each class of data. In order to evaluate the performance of DyMoS, we applied it to a real customer churn problem of an automobile insurance company, The result shows that the DyMoS outperformed any model which employed only one data mining technique such as artificial neural network, decision tree and case-based reasoning.

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On the Tree Model grown by one-sided purity (단측 순수성에 의한 나무모형의 성장에 대하여)

  • 김용대;최대우
    • Journal of Intelligence and Information Systems
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    • v.7 no.1
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    • pp.17-25
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    • 2001
  • Tree model is the most popular classification algorithm in data mining due to easy interpretation of the result. In CART(Breiman et al., 1984) and C4.5(Quinlan, 1993) which are representative of tree algorithms, the split fur classification proceeds to attain the homogeneous terminal nodes with respect to the composition of levels in target variable. But, fur instance, in the chum prediction modeling fur CRM(Customer Relationship management), the rate of churn is generally very low although we are interested in mining the churners. Thus it is difficult to get accurate prediction modes using tree model based on the traditional split rule, such as mini or deviance. Buja and Lee(1999) introduced a new split rule, one-sided purity for classifying minor interesting group. In this paper, we compared one-sided purity with traditional split rule, deviance analyzing churning vs. non-churning data of ISP company. Also reviewing the result of tree model based on one-sided purity with some simulated data, we discussed problems and researchable topics.

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