Buletin Pos dan Telekomunikasi
Vol. 22 No. 2 (2024): December 2024

Predicting Customer Churn in Indonesian ISPs with Multilayer Perceptron and Marketing Intelligence

Gema Persada Arihta (Unknown)
Tanika D Sofianti (Unknown)
Win Sukardi (Unknown)



Article Info

Publish Date
19 Dec 2024

Abstract

Customer churn is a major challenge in the highly competitive Indonesian Internet Service Provider (ISP) market, where companies face significant customer turnover rates impacting profitability and sustainability. This study integrates multilayer perceptron (MLP) neural networks with marketing intelligence to predict and mitigate churn effectively. The methodology includes data preparation, exploratory data analysis (EDA), and model development. EDA plays a critical role in identifying key features for churn prediction, ensuring meaningful insights into customer behavior. The model uses the Synthetic Minority Oversampling Technique (SMOTE) to address class imbalance, improving prediction performance. The final model achieved an area under the curve (AUC) of 99%, a metric that measures how well the model distinguishes between churned and non-churned customers, and an F1 score of 97%, which balances the model’s precision (accuracy of positive predictions) and recall (identification of all true churners). These findings provide actionable insights for ISPs to tailor customer retention strategies and improve business performance.

Copyrights © 2024






Journal Info

Abbrev

bpostel

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Industrial & Manufacturing Engineering Social Sciences

Description

Scientific work/Manuscript that can be published in the Buletin Pos dan Telekomunikasi is in the form of academic papers, research reports, surveys, research briefings, and degree theses, analysis of secondary data, thoughts, theoretical/conceptual/methodological reviews in the field of: Post: ...