Revolutionizing market surveillance: customer relationship management with machine learning

In the telecommunications industry, predicting customer churn is essential for retaining clients and sustaining profitability. Traditional CRM systems often fall short due to their static models, limiting responsiveness to evolving customer behaviors. To address these gaps, we developed the SmartSurveil CRM model, an ensemble-based system combining random forest, gradient boosting, and support vector machine to enhance churn prediction accuracy and adaptability. Using a comprehensive telecom dataset, our model achieved high performance metrics, including an accuracy of 0.89 and ROC-AUC of 0.91, surpassing baseline approaches. Integrated into a decision support system (DSS), SmartSurveil provides actionable insights to improve customer retention, enabling telecom companies to tailor strategies dynamically. Additionally, this model addresses ethical concerns, including data privacy and algorithmic transparency, ensuring a robust and responsible CRM approach. The SmartSurveil CRM model represents a substantial advancement in predictive accuracy and practical applicability within CRM systems.

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Publication Details

Journal
PeerJ Computer Science
Published
2024-12-18
DOI
https://doi.org/10.7717/peerj-cs.2583
Citations
30
Primary Topic
Customer churn and segmentation
Type
article
Field-Weighted Citation Impact
13.17
Controls
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article

Revolutionizing market surveillance: customer relationship management with machine learning

Xiangting Shi, Lihao Zhang, Yakang Zhang, Manning Yu
30 citations
PeerJ Computer Science
Customer churn and segmentation
13.17
article

Revolutionizing market surveillance: customer relationship management with machine learning

Xiangting Shi, Lihao Zhang, Yakang Zhang, Manning Yu
article en
30 citations

Abstract

In the telecommunications industry, predicting customer churn is essential for retaining clients and sustaining profitability. Traditional CRM systems often fall short due to their static models, limiting responsiveness to evolving customer behaviors. To address these gaps, we developed the SmartSurveil CRM model, an ensemble-based system combining random forest, gradient boosting, and support vector machine to enhance churn prediction accuracy and adaptability. Using a comprehensive telecom dataset, our model achieved high performance metrics, including an accuracy of 0.89 and ROC-AUC of 0.91, surpassing baseline approaches. Integrated into a decision support system (DSS), SmartSurveil provides actionable insights to improve customer retention, enabling telecom companies to tailor strategies dynamically. Additionally, this model addresses ethical concerns, including data privacy and algorithmic transparency, ensuring a robust and responsible CRM approach. The SmartSurveil CRM model represents a substantial advancement in predictive accuracy and practical applicability within CRM systems.

PeerJ Computer ScienceVol. 10
Chinese University of Hong Kong (HK), Columbia University (US)
Industry, innovation and infrastructure
Openalex Percentile: Top 1%
Customer churn and segmentation
13.17
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