Investigating the impact of undersampling and bagging: an empirical investigation for customer attrition modeling

IF 4.4 3区 管理学 Q1 OPERATIONS RESEARCH & MANAGEMENT SCIENCE
Arno De Caigny, Kristof Coussement, Matthijs Meire, Steven Hoornaert
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引用次数: 0

Abstract

Given the growing interest in using AI and analytics to support CRM decision making, we discuss why undersampling and bagging are popular prediction techniques in customer churn prediction (CCP). The former helps in tackling the class imbalance problem and the latter improves model stability. However, extant CCP literature is unclear on the impact of undersampling on model stability and predictive performance, while bagging has difficulties in handling the class imbalance problem. Therefore, we extend existing CCP research to benchmark underbagging, which combines undersampling and bagging. Having both prediction techniques combined we recuperate customer data that would have been lost in undersampling by using them in multiple bags and passing an undersampled, more balanced training set to the classifier. In an extensive experiment including 11 real-life CCP datasets, underbagging is benchmarked against its constituents and other popular CCP classifiers in terms of predictive performance, profit and operational efficiency. Our results indicate that underbagging is a valid and reliable alternative framework for CCP prediction.

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来源期刊
Annals of Operations Research
Annals of Operations Research 管理科学-运筹学与管理科学
CiteScore
7.90
自引率
16.70%
发文量
596
审稿时长
8.4 months
期刊介绍: The Annals of Operations Research publishes peer-reviewed original articles dealing with key aspects of operations research, including theory, practice, and computation. The journal publishes full-length research articles, short notes, expositions and surveys, reports on computational studies, and case studies that present new and innovative practical applications. In addition to regular issues, the journal publishes periodic special volumes that focus on defined fields of operations research, ranging from the highly theoretical to the algorithmic and the applied. These volumes have one or more Guest Editors who are responsible for collecting the papers and overseeing the refereeing process.
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