Hyperparameter Optimization and Combined Data Sampling Techniques in Machine Learning for Customer Churn Prediction: A Comparative Analysis

Author:

Imani Mehdi1ORCID,Arabnia Hamid Reza2ORCID

Affiliation:

1. Department of Computer and System Sciences, Stockholm University, 10691 Stockholm, Sweden

2. School of Computing, University of Georgia, Athens, GA 30602, USA

Abstract

This paper explores the application of various machine learning techniques for predicting customer churn in the telecommunications sector. We utilized a publicly accessible dataset and implemented several models, including Artificial Neural Networks, Decision Trees, Support Vector Machines, Random Forests, Logistic Regression, and gradient boosting techniques (XGBoost, LightGBM, and CatBoost). To mitigate the challenges posed by imbalanced datasets, we adopted different data sampling strategies, namely SMOTE, SMOTE combined with Tomek Links, and SMOTE combined with Edited Nearest Neighbors. Moreover, hyperparameter tuning was employed to enhance model performance. Our evaluation employed standard metrics, such as Precision, Recall, F1-score, and the Receiver Operating Characteristic Area Under Curve (ROC AUC). In terms of the F1-score metric, CatBoost demonstrates superior performance compared to other machine learning models, achieving an outstanding 93% following the application of Optuna hyperparameter optimization. In the context of the ROC AUC metric, both XGBoost and CatBoost exhibit exceptional performance, recording remarkable scores of 91%. This achievement for XGBoost is attained after implementing a combination of SMOTE with Tomek Links, while CatBoost reaches this level of performance after the application of Optuna hyperparameter optimization.

Publisher

MDPI AG

Subject

Computer Science (miscellaneous)

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