Search Results (11)

This article presents an interpretable framework for customer segmentation and churn risk detection, integrating fuzzy clustering, explainable AI (XAI), and strategic scoring. The process begins with Fuzzy C-Means (FCM) applied to normalized RFM indicators (Recency, Frequency, Monetary), which were then mapped to a 2-tuple linguistic scale to enhance semantic interpretability. Cluster memberships and centroids were analyzed to identify distinct behavioral patterns. An XGBoost classifier was trained to validate the coherence of the fuzzy segments, while SHAP and LIME provided global and local explanations for the classification decisions. Following segmentation, an AHP-based strategic score was computed for each customer, using weights derived from pairwise comparisons reflecting organizational priorities. These scores were also translated into the 2-tuple domain, reinforcing interpretability. The model then identified customers at risk of disengagement, defined by a combination of low Recency, high Frequency and Monetary values, and a low AHP score. Based on Recency thresholds, customers are classified as Active, Latent, or Probable Churn. A second XGBoost model was applied to predict this risk level, with SHAP used to explain its predictive behavior. Overall, the proposed framework integrated fuzzy logic, semantic representation, and explainable AI to support actionable, transparent, and human-centered customer analytics. Full article

In today’s volatile market environment, supply chain management (SCM) must address complex challenges such as fluctuating demand, fraud, and delivery delays. This study applies machine learning techniques—Extreme Gradient Boosting (XGBoost) and Recurrent Neural Networks (RNNs)—to optimize demand forecasting, inventory policies, and risk mitigation within a unified framework. XGBoost achieves high forecasting accuracy (MAE = 0.1571, MAPE = 0.48%), while RNNs excel at fraud detection and late delivery prediction (F1-score ≈ 98%). To evaluate models beyond accuracy, we introduce two novel metrics: Cost–Accuracy Efficiency (CAE) and CAE-ESG, which combine predictive performance with cost-efficiency and ESG alignment. These holistic measures support sustainable model selection aligned with the ISO 14001, GRI, and SASB benchmarks; they also demonstrate that, despite lower accuracy, Random Forest achieves the highest CAE-ESG score due to its low complexity and strong ESG profile. We also apply SHAP analysis to improve model interpretability and demonstrate business impact through enhanced Customer Lifetime Value (CLV) and reduced churn. This research offers a practical, interpretable, and sustainability-aware ML framework for supply chains, enabling more resilient, cost-effective, and responsible decision-making. Full article

Due to increased competition in the marketplace, companies in all industries are facing the problem of customer attrition. In order to expand their market share and increase profits, companies have shifted from the concept of ‘acquiring new customers’ to ‘retaining old customers’. In this study, we design a deep learning model based on multi-network feature extraction and an attention mechanism, convolutional neural network–bidirectional long and short-term memory network–fully connected layer–coordinate attention (CNN-BiLSTM-FC-CoAttention), and apply it to customer churn risk assessment. In the data preprocessing stage, the imbalanced dataset was processed using the SMOTE-ENN hybrid sampling method. In the feature extraction stage, a sequence-based CNN and time-based BiLSTM are combined to extract the local and time series features of the customer data. In the feature transformation stage, high-level features are extracted using a fully connected layer of 64 Relu neurons and the sequence features are reshaped into matrix features. In the attention enhancement stage, the extracted feature information is refined using a coordinate attention learning module to fully learn the channel and spatial location information of the feature map. To evaluate the performance of the proposed model, we include public datasets from telecom, bank and insurance industries for ten-fold cross-validation experiments, and the results show that the CNN-BiLSTM-FC-CoAttention model outperforms the comparison models in all metrics. Our proposed model improves the accuracy and generalisation of the model prediction by combining multiple algorithms, enabling it to be widely used in multiple industries. As a result, the model gives enterprises a better and more general decision-making reference for the timely identification of potential churn customers. Full article

The banking industry faces significant challenges, from high customer churn rates to threatening long-term revenue generation. Traditionally, churn models assess service quality using customer satisfaction metrics; however, these subjective variables often yield low predictive accuracy. This study examines the relationship between customer attrition and account balance using decision trees (DT), random forests (RF), and gradient-boosting machines (GBM). This research utilises a customer churn dataset and applies synthetic oversampling to balance class distribution during the preprocessing of financial variables. Account balance service is the primary factor in predicting customer churn, as it yields more accurate predictions compared to traditional subjective assessment methods. The tested model set achieved its highest predictive performance by applying boosting methods. The evaluation of research data highlights the critical role of financial indicators in shaping effective customer retention strategies. By leveraging machine learning intelligence, banks can make more informed decisions, attract new clients, and mitigate churn risk, ultimately enhancing long-term financial results. Full article

The rapid growth of e-commerce has significantly increased the demand for advanced techniques to address specific tasks in the e-commerce field. In this paper, we present a brief survey of machine learning and deep learning techniques in the context of e-commerce, focusing on the years 2018–2023 in a Google Scholar search, with the aim of identifying state-of-the-art approaches, main topics, and potential challenges in the field. We first introduce the applied machine learning and deep learning techniques, spanning from support vector machines, decision trees, and random forests to conventional neural networks, recurrent neural networks, generative adversarial networks, and beyond. Next, we summarize the main topics, including sentiment analysis, recommendation systems, fake review detection, fraud detection, customer churn prediction, customer purchase behavior prediction, prediction of sales, product classification, and image recognition. Finally, we discuss the main challenges and trends, which are related to imbalanced data, over-fitting and generalization, multi-modal learning, interpretability, personalization, chatbots, and virtual assistance. This survey offers a concise overview of the current state and future directions regarding the use of machine learning and deep learning techniques in the context of e-commerce. Further research and development will be necessary to address the evolving challenges and opportunities presented by the dynamic e-commerce landscape. Full article

Customers are prominent resources in every business for its sustainability. Therefore, predicting customer churn is significant for reducing churn, particularly in the high-churn-rate telecommunications business. To identify customers at risk of churning, tactical marketing actions can be strategized to raise the likelihood of the churn-probable customers remaining as customers. This might provide a corporation with significant savings. Hence, in this work, a churn prediction system is developed to assist telecommunication operators in detecting potential churn customers. In the proposed framework, the input data quality is improved through the processes of exploratory data analysis and data preprocessing for identifying data errors and comprehending data patterns. Then, feature engineering and data sampling processes are performed to transform the captured data into an appropriate form for classification and imbalanced data handling. An optimized ensemble learning model is proposed for classification in this framework. Unlike other ensemble models, the proposed classification model is an optimized weighted soft voting ensemble with a sequence of weights applied to weigh the prediction of each base learner with the hypothesis that specific base learners in the ensemble have more skill than others. In this optimization, Powell’s optimization algorithm is applied to optimize the ensemble weights of influence according to the base learners’ importance. The efficiency of the proposed optimally weighted ensemble learning model is evaluated in a real-world database. The empirical results show that the proposed customer churn prediction system achieves a promising performance with an accuracy score of 84% and an F1 score of 83.42%. Existing customer churn prediction systems are studied. We achieved a higher prediction accuracy than the other systems, including machine learning and deep learning models. Full article

The digital world is very dynamic. The ability to timely identify possible vendor migration trends or customer loss risks is very important in cloud-based services. This work describes a churn risk prediction system and how it can be applied to guide cloud service providers for recommending adjustments in the service subscription level, both to promote rational resource consumption and to avoid CSP customer loss. A training dataset was built from real data about the customer, the subscribed service and its usage history, and it was used in a supervised machine-learning approach for prediction. Classification models were built and evaluated based on multilayer neural networks, AdaBoost and random forest algorithms. From the experiments with our dataset, the best results for a churn prediction were obtained with a random forest-based model, with 64 estimators, having 0.988 accuracy and 0.997 AUC value. Full article

In the airline industry, customer satisfaction occurs when passengers’ expectations are met through the airline experience. Considering that airline service quality is the main factor in obtaining new and retaining existing customers, airline companies are applying various approaches to improve the quality of the physical and social servicescapes. It is common to use data analysis techniques for analyzing customer propensity in marketing. However, their application to the airline industry has traditionally focused solely on surveys; hence, there is a lack of attention paid to deep learning techniques based on survey results. This study has two purposes. The first purpose is to find the relationship between various factors influencing customer churn risk and satisfaction by analyzing the airline customer data. For this, we applied deep learning techniques to the survey data collected from the users who have used mostly Korean airplanes. To the best of our knowledge, this is the one of the few attempts at applying deep learning to analyze airline customer propensities. The second purpose is to analyze the influence of the social servicescape, including the viewpoints of the cabin crew and passengers using aircraft, on airline customer propensities. The experimental results demonstrated that the proposed method of considering human services increased the accuracy of predictive models by up to 10% and 9% in predicting customer churn risk and satisfaction, respectively. Full article

Modern users are accustomed to always-accessible networks ready to serve all of their communication, entertainment, information, and other needs, at the touch of their devices. Spoiled with choices provided on the competitive markets, the risk of customer churn makes network and service providers sensitive to user Quality of Experience (QoE). Services that enable people to work and industries to function in these pandemic times, such as the telemeeting service, are becoming ever more critical, not just for the end-users but also for the providers. Nevertheless, the heterogeneity of end-users network environments and the uniqueness of the service (bidirectional video and audio transmissions and interactivity between the meeting peers) imposes specific QoE requirements. Hence, this paper focuses on understanding how different service quality degradations affect user perception and frustration with such impaired service. The impact of eight quality degradations was analyzed. Based on the conducted user study, we used the multiple regression analysis and developed three models capable of predicting user Level of Frustration (LoF) for the specific degradations that we have analyzed. The models work with the User Frustration Susceptibility Index (UFSI), which categorizes users into groups based on their tendency to become frustrated with the impaired service. Full article

We propose an Explainable AI model that can be employed in order to explain why a customer buys or abandons a non-life insurance coverage. The method consists in applying similarity clustering to the Shapley values that were obtained from a highly accurate XGBoost predictive classification algorithm. Our proposed method can be embedded into a technologically-based insurance service (Insurtech), allowing to understand, in real time, the factors that most contribute to customers’ decisions, thereby gaining proactive insights on their needs. We prove the validity of our model with an empirical analysis that was conducted on data regarding purchases of insurance micro-policies. Two aspects are investigated: the propensity to buy an insurance policy and the risk of churn of an existing customer. The results from the analysis reveal that customers can be effectively and quickly grouped according to a similar set of characteristics, which can predict their buying or churn behaviour well. Full article

With miscellaneous information accessible in public depositories, consumer data is the knowledgebase for anticipating client preferences. For instance, subscriber details are inspected in telecommunication sector to ascertain growth, customer engagement and imminent opportunity for advancement of services. Amongst such parameters, churn rate is substantial to scrutinize migrating consumers. However, predicting churn is often accustomed with prevalent risk of invading sensitive information from subscribers. Henceforth, it is worth safeguarding subtle details prior to customer-churn assessment. A dual approach is adopted based on dragonfly and pseudonymizer algorithms to secure lucidity of customer data. This twofold approach ensures sensitive attributes are protected prior to churn analysis. Exactitude of this method is investigated by comparing performances of conventional privacy preserving models against the current model. Furthermore, churn detection is substantiated prior and post data preservation for detecting information loss. It was found that the privacy based feature selection method secured sensitive attributes effectively as compared to traditional approaches. Moreover, information loss estimated prior and post security concealment identified random forest classifier as superlative churn detection model with enhanced accuracy of 94.3% and minimal data forfeiture of 0.32%. Likewise, this approach can be adopted in several domains to shield vulnerable information prior to data modeling. Full article