A Neural Network based Approach for Predicting Customer Churn in Cellular Network Services

Marketing literature states that it is more costly to engage a new customer than to retain an existing loyal customer. Churn prediction models are developed by academics and practitioners to effectively manage and control customer churn in order to retain existing customers. As churn management is an important activity for companies to retain loyal customers, the ability to correctly predict customer churn is necessary. As the cellular network services market becoming more competitive, customer churn management has become a crucial task for mobile communication operators. This paper proposes a neural network (NN) based approach to predict customer churn in subscription of cellular wireless services. The results of experiments indicate that neural network based approach can predict customer churn with accuracy more than 92%. Further, it was observed that medium sized NNs perform best for the customer churn prediction when different neural network’s topologies were experimented. General Terms Prediction, Neural Networks, Churn Management.