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All Journal MATEMATIKA JURNAL MATEMATIKA STATISTIKA DAN KOMPUTASI Jurnal Ilmu Sosial dan Humaniora CAUCHY: Jurnal Matematika Murni dan Aplikasi Matematika dan Sains Journal of Information Systems Engineering and Business Intelligence Prosiding SI MaNIs (Seminar Nasional Integrasi Matematika dan Nilai-Nilai Islami) Syntax Literate: Jurnal Ilmiah Indonesia MUST: Journal of Mathematics Education, Science and Technology BAREKENG: Jurnal Ilmu Matematika dan Terapan JTAM (Jurnal Teori dan Aplikasi Matematika) Zero : Jurnal Sains, Matematika, dan Terapan Cakrawala: Jurnal Litbang Kebijakan PengabdianMu: Jurnal Ilmiah Pengabdian kepada Masyarakat Jurnal Aplikasi Statistika & Komputasi Statistik JP2M (Jurnal Pendidikan dan Pembelajaran Matematika) G-Tech : Jurnal Teknologi Terapan Inferensi Contemporary Mathematics and Applications (ConMathA) Jurnal Keselamatan Transportasi Jalan (Indonesian Journal of Road Safety) Jurnal Layanan Masyarakat (Journal of Public Service) PROCEEDINGS OF THE INTERNATIONAL CONFERENCE ON DATA SCIENCE AND OFFICIAL STATISTICS Jurnal Keselamatan Transportasi Jalan Limits: Journal of Mathematics and Its Applications
Toha Saifudin
Departement Of Mathematics, Faculty Of Science And Technology, Airlangga University
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Journal : Syntax Literate: Jurnal Ilmiah Indonesia

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Applying SMOTE-NC on CART Algorithm to Handle Imbalanced Data in Customer Churn Prediction: A Case Study of Telecommunications Industry Ilma Amira Rahmayanti; Sediono Sediono; Toha Saifudin; Elly Ana
Syntax Literate Jurnal Ilmiah Indonesia
Publisher : CV. Ridwan Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (405.247 KB) | DOI: 10.36418/syntax-literate.v6i2.5166

Abstract

These days, telecommunications is very much needed in all areas of life. This condition has made the competition among the company is extremely tense. One strategic way to protect the company is to retain existing customers. The retention program as a scheme to retain customers must be implemented precisely and efficiently so that the company can maintain as many customers as possible. In this case, customer churn prediction holds an essential role. However, the existence of imbalanced data can increase prediction errors and create problems. Hence, in order to overcome the issue, this study combined the Synthetic Minority Oversampling Technique – Nominal Continuous (SMOTE-NC) with Classification and Regression Trees (CART). SMOTE-NC was applied to balance classes on training data, while CART formed a classification tree from those balanced data. Then, this classification tree created by CART algorithm had become the basis for predicting customer churn. The data used in this study are from https://community.ibm.com/, where the variables are related to customer demographics, customer contracts, usage history, and customer status of one of the telecom companies. Based on the analysis of these data, SMOTE-NC and CART combination succeeded in reducing errors in predicting customer churn, which also led recall value to increase by approximately 19%. Moreover, the accuracy generated from this combination method was still in a pretty good range of over 75%. Therefore, this study proposes an excellent way to improve the performance of churn prediction, especially in the telecommunications industry.
Co-Authors Abdul Aziz Aditya Syarifudin Akbar Adyatma, Isryad Yoga Afifa, Fitriana Nur Aflaha, Nabila Shafa Aisharezka, Mutiara Aisyah, Arlisya Shafwan Al Hasri, Ilham Maulana Aldawiyah, Najwa Khoir Alfi Nur Nitasari Alfredi Yoani Alpandi, Gaos Tipki Ana, Elly Andini Putri Mediani Angga Kusuma Bayu Viargo Aniq Atiqi Any Tsalasatul Fitriyah Ardi Kurniawan Ardi Kurniawan Ariani, Fildzah Tri Januar Ariyawan, Jovansha Arrofah, Aini Divayanti Aulia, Niswa Faizah Auliyah, Nina Ayuning Dwis Cahyasari Azis, Aurelia Islami Azizah, Khansa Baihaqi, Mochamad Belindha Ayu Ardhani Budijono, Gabriella Agnes Chaerobby Fakhri Fauzaan Purwoko Christiano Ginzel, Bryan Given Christopher Andreas Dewanti, Maria Setya Dewanty, Sanda Insania Diah Puspita Ningrum Dita Amelia Dita Amelia, Dita Easyfa Wieldyanisa, Ezha Elly Ana Elly Pusporani Erfiana Erfiana Faiza, Atikah Fajrina, Sofia Falasifah, Sabrina Fatmawati Fatmawati Fauzi, Doni Muhammad Fauziah, Nathania Fina Insyiroh Firmansyah, Mochamad FIRMANSYAH, MOCHAMMAD Fitriani, Mubadi'ul Fortunata, Regina Gaos Tipki Alpandi Gaos Tipki Alpandi Hardiansyah, Fernanda Rizky Herdianto, Muhammad Hendra Ilma Amira Rahmayanti Indrasta, Irma Ayu Insania Dewanty, Sanda Januarta, R. Arya Khairian, Farhan Aldan Kholidiyah, Azizatul Leni Sartika Panjaitan Lensa Rosdiana Safitri M. Fariz Fadillah Mardianto Maelcardino Christopher Justin Mahadesyawardani, Arinda Maharani, Prima Makhbubah, Karina Rubita Marisa Rifada Marpaung, Josua Ronaldo Davico Marshanda Aprilia Marthabakti, CitraWani Mediani, Andini Putri Mochamad Rasyid Aditya Putra Muhammad Rosyid Ridho Az Zuhro Muzakki, Naufal Nahar, Muhammad Hafidzuddin Naura, Sheila Sevira Asteriska Nugraha, Galuh Cahya Nur Chamidah Nur chamnidah Nur Rahmah Miftakhul Jannah Nurdin, Nabila Nurrohmah, Zidni 'Ilmatun Oktavia, Sabrina Salsa Panjaitan, Leni Sartika Pratama, Fachriza Yosa Purnama, Titania Faisha Puspasari, Laili Rahayu, Rizky Dwi Kurnia Ramadhani, Azzah Nazhifa Wina Ramadhanti, Aulia Ramadhanty, Devira Thania Ramadhina, Fidela Sahda Ilona Recylia, Rien Risky Wahyuningsih Sa'idah, Andini Safitri, Lensa Rosdiana Salma Bethari Andjani Sumarto Salsabila, Fatiha Nadia Sa’idah Zahrotul Jannah Sediono, Sediono Sentosa, Martha Ayu Setyawan, Muhammad Daffa Bintang Shalwa Oktavrilia Kusuma Siagian, Kimberly Maserati Sihite, Rivaldi Siti Maghfirotul Ulyah Sugha Faiz Al Maula Suliyanto Suliyanto Suliyanto Syaugi Sungkar, Salman Tiani Wahyu Utami Trisa, Nadya Lovita Hana Ubadah, Mohammad Noufal Valida, Hanny Victory, Johanna Tania Wahyuli, Diana Widyawati, Ayu Wieldyanisa, Ezha Easyfa Wulandari, Indana Zulfa Yan Dwi Zhafira, Azizah Atsariyyah