Predictive analytics: a data mining technique in customer churn management for decision making

Anotace

Decision making is a key feature of every organization. The quality of decisions made are dependent on some amount of knowledge generated from existing or researched information. The use of modern analytical tools to generate such knowledge is prudent for any profit driven firm. Taking decisions on customers is one of the area’s most companies, especially companies in the service sector in developing economies, grapple with. The ability of these companies to predict customer churn is gravely insufficient. Telecommunication companies in some developing countries, for example Ghana, suffer a lot from this canker. The ability to identify potential churn customers, cluster customers with similar consumption behaviour and identify solid points for customer loyalty are grey areas Telecommunication companies in Ghana contend with. Data mining algorithms therefore offer modern tools for model creation in prediction, clustering and association rule mining for decision making.