Churn Forecast Based on Two-step Classification in Security Industry

Ying Li, Ziyang Deng, Qiang Qian, Rui Xu

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School of Business, East China University of Science and Technology, Shanghai, China.

DOI: 10.4236/iim.2011.34019                

Abstract

Customer is a determinant factor that decides whether a security company will be alive. As a result, the competition for customers is more and more intense between security companies. In order to avoid profit decrease caused by churn, security companies must find those customers who have the loss risk and make measures to maintain loyal customers. Now it is the question that how to find and analyze those customers. In this paper, a two-step classification method about churn Analysis is proposed and the problem of churn in security is analyzed.

Keywords

Customer Segmentation, Churn, Self-Organize Map Neural Network, Decision Tree

Conflicts of Interest

The authors declare no conflicts of interest.

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