Customer segmentation for churn management by using ant colony algorithm

Abstract

It is extremely important for companies to set customer priorities and act in line with these priorities. The ant colony algorithm is used to perform customer segmentation. To do this, the shortest path approach was chosen. Besides, clustering is done by the Euclidean distance formula in the ant colony algorithm. The customer segmentation attributes are mostly related to the satisfaction factors, but some of them were eliminated by using ranker. These results are mostly related to the customer’s income, tenure, equip call card and reside. These attributes are the most important satisfaction factors not to lose customers as expected. There are many reasons in changing GSM operator for subscribers, and it is very important for companies to predict if subscriber will change GSM operator or not. For this reason, companies that give GSM services have to monitor subscribers’ behaviour and predict one step forward. In this study, changing subscribers’ GSM operator will be predicted by using data mining techniques.

Keywords: Ant colony, churn management, customer segmentation, data mining.

Categories: I.2.1, I.2