Y. Syah, Rahmad B.
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An boosting business intelligent to customer lifetime value with robust M-estimation Elveny, Marischa; Y. Syah, Rahmad B.; M. Nasution, Mahyuddin K.
IAES International Journal of Artificial Intelligence (IJ-AI) Vol 13, No 2: June 2024
Publisher : Institute of Advanced Engineering and Science

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.11591/ijai.v13.i2.pp1632-1639

Abstract

When a business concentrates too much on acquiring new clients rather than retaining old ones, mistakes are sometimes made. Each customer has a different value. Customer lifetime value (CLV) is a metric used to assess longterm customer value. Customer value is a key concern in any commercial endeavor. When there are variations in customer behavior, CLV forecasts the value of total customer income when the data distribution is not normal, and outliers are present. Robust M-estimation, a maximum likelihood type estimator, is used in this study to enhance CLV data. Through the minimization of the regression parameter from the residual value, robust Mestimation eliminates data outliers in customer metric data. With an accuracy of 94.15%, R-square is used to gauge model performance. This research shows that CLV optimization can be used as a marketing and sales strategy by companies.
An efficiency metaheuristic model to predicting customers churn in the business market with machine learning-based Y. Syah, Rahmad B.; Muliono, Rizki; Akbar Siregar, Muhammad; Elveny, Marischa
IAES International Journal of Artificial Intelligence (IJ-AI) Vol 13, No 2: June 2024
Publisher : Institute of Advanced Engineering and Science

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.11591/ijai.v13.i2.pp1547-1556

Abstract

Metaheuristics is an optimization method that improves and completes a task in a short period of time based on its objective function. The goal of metaheuristics is to search the search space for the best solution. Machine learning detects patterns in large amounts of data. Machine learning encourages enterprise automation in a variety of areas in order to improve predictive ability without requiring explicit programming to make decisions. The percentage of customers who leave the company or stop using the service is referred to as churn. The purpose of this research is to forecast customer churn in the market business. Particle swam optimization (PSO) was used in this study as a metaheuristic method to provide a strategy to guide the search process for new customers and obtain parameters for processing by support vector regression (SVR). SVR predicts the value of a continuous variable by determining the best decision line to find the best value. The number of transactions, the number of periods, and the conversion value are the parameters that are visible. Efficiency models are added to improve prediction results through two optimizations: prediction flexibility and risk minimization. The findings demonstrate the effectiveness of prediction in reducing customer churn.