Jiko (Jurnal Informatika dan komputer)
Vol 7, No 3 (2024)

CUSTOMER CHURN PREDICTION USING THE RANDOM FOREST ALGORITHM

Setiawan, Yosep (Unknown)
Hadiana, Asep Id (Unknown)
Umbara, Fajri Rakhmat (Unknown)



Article Info

Publish Date
06 Dec 2024

Abstract

Customer churn prediction plays a vital role in modern business, accurately influencing strategic and operational decisions that influence customer loyalty to a service. Customer churn focuses on customer retention being more profitable than attracting new customers because long-term customers provide lower profits and costs while losing customers increases the costs and need to attract new customers. However, customer churn still occurs frequently and cannot be predicted. If customer churn is left unchecked, it will endanger the company or banking industry because it can cause loss of income, damage reputation, and decrease market share. Random Forest, a data mining technique, was used in this research because of its ability to predict and handle many variables. This research aims to predict customer churn using the Random Forest method with datasets from Europe, especially France, Spain, and Germany, hoping to benefit the banking industry by identifying customers at high risk of abandoning services. This research is expected to benefit business people from customer churn predictions. Especially in the banking industry, it can help identify customers at high risk of abandoning service. Thus, companies can take appropriate steps to retain these customers, increase customer retention, strengthen customer loyalty and optimize their business performance. The results of this research are an accurate system for predicting customer churn in the future. The research obtained accuracy results of 87% in predicting customer churn using accuracy testing in the form of a confusion matrix.

Copyrights © 2024






Journal Info

Abbrev

jiko

Publisher

Subject

Computer Science & IT

Description

Jiko (Jurnal Informatika dan Komputer) Ternate adalah jurnal ilmiah diterbitkan oleh Program Studi Teknik Informatika Universitas Khairun sebagai wadah untuk publikasi atau menyebarluaskan hasil - hasil penelitian dan kajian analisis yang berkaitan dengan bidang Informatika, Ilmu Komputer, Teknologi ...