Entropy Based Trees to Support Decision Making for Customer Churn Management

K. Gajowniczek, A. Orłowski and T. Ząbkowski Department of Informatics, Faculty of Applied Informatics and Mathematics, WULS-SGGW, Nowoursynowska 159, 02-776 Warsaw, Poland

Full Text PDF

In this work we analyze empirically customer churn problem from a physical point of view to provide objective, data driven and significant answers to support decision making process in business application. In particular, we explore different entropy measures applied to decision trees and assess their performance from the business perspective using set of model quality measures often used in business practice. Additionally, the decision trees are compared with logistic regression and two machine learning methods - neural networks and support vector machines.

DOI: 10.12693/APhysPolA.129.971 PACS numbers: 05.45.Tp, 05.40.Ca, 07.05.Kf, 07.05.Mh