Analysis of an Optimized LightGBM Based on Different Objective Functions for Customer Churn Prediction in Telecom

Citation

Lim, Zheng You and Pang, Ying Han and Ooi, Shih Yin and Khoh, Wee How (2023) Analysis of an Optimized LightGBM Based on Different Objective Functions for Customer Churn Prediction in Telecom. In: 2023 7th International Conference on Automation, Control and Robots (ICACR), 4-6 August 2023, Kuala Lumpur, Malaysia.

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Abstract

Telecommunication industry is one of the highly competitive sectors with high customer churn rates. Customers are important to a business for its sustainability. Therefore, businesses are endeavouring to reduce the churn rate since the cost of acquiring a new customer is much higher than retaining an existing customer. In this paper, a customer churn prediction framework is developed with an optimized LightGBM algorithm, coined eLightGBM. The optimization is based on different factor awarenesses defined in different objective functions by using OPTUNA optimization. In eLightGBM, the model hyperparameter can be fine-tuned based on different objective functions, which are recall score maximization and F1 score maximization. Specifically, LightGBM hyperparameters are adjusted in each repeated loop until a satisfactory recall or F1 is scored. The empirical results demonstrate that the proposed eLightGBMs show higher recall scores compared to the other machine learning classifiers. This indicates that eLightGBMs are able to detect a larger proportion of churners.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Machine learning, telecommunications ,
Subjects: Q Science > QA Mathematics > QA71-90 Instruments and machines > QA75.5-76.95 Electronic computers. Computer science
T Technology > TK Electrical engineering. Electronics Nuclear engineering > TK5101-6720 Telecommunication. Including telegraphy, telephone, radio, radar, television
Divisions: Faculty of Information Science and Technology (FIST)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 02 Jan 2024 07:21
Last Modified: 02 Jan 2024 07:21
URII: http://shdl.mmu.edu.my/id/eprint/11965

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