Neural Network Based a Comparative Analysis for Customer Churn Prediction

Customer churn refers to a customer's disconnection from a business. The expense associated with customer churn encompasses both the forfeited revenue and the marketing expenditures required to acquire new customers. Mitigating customer churn stands as the foremost objective for every business. Customer churn prediction will contribute to developing strategies enabling businesses to retain these customers by identifying customers with a high risk of loss. In the digital world, the importance of developing customer churn prediction models is increasing daily. In this study, MLP based artificial neural network model was developed for customer churn prediction using customer data from an anonymous telecommunications company. The developed model was compared with kNN, LR, NB, RF, and SVM. The prediction results of the applied models were discussed, and the experimental results showed that all the models compared had over 70% accuracy. Experimental results showed that the developed MLP-based artificial neural network model has the most successful classification performance compared to other models with approximately 95% accuracy.