There are now many explainable AI methods for understanding the decisions of a machine learning model. Among these are those based on counterfactual reasoning, which involve simulating features changes and observing the impact on the prediction. This article proposes to view this simulation process as a source of creating a certain amount of knowledge that can be stored to be used, later, in different ways. This process is illustrated in the additive model and, more specifically, in the case of the naive Bayes classifier, whose interesting properties for this purpose are shown.

In this paper, we introduce a novel predict-and-optimize method for profit-driven churn prevention. We frame the task of targeting customers for a retention campaign as a regret minimization problem. The main objective is to leverage individual customer lifetime values (CLVs) to ensure that only the most valuable customers are targeted. In contrast, many profit-driven strategies focus on churn probabilities while considering average CLVs. This often results in significant information loss due to data aggregation. Our proposed model aligns with the guidelines of Predict-and-Optimize (PnO) frameworks and can be efficiently solved using stochastic gradient descent methods. Results from 12 churn prediction datasets underscore the effectiveness of our approach, which achieves the best average performance compared to other well-established strategies in terms of average profit.

Mobile health apps are revolutionizing the healthcare ecosystem by improving communication, efficiency, and quality of service. In low- and middle-income countries, they also play a unique role as a source of information about health outcomes and behaviors of patients and healthcare workers, while providing a suitable channel to deliver both personalized and collective policy interventions. We propose a framework to study user engagement with mobile health, focusing on healthcare workers and digital health apps designed to support them in resource-poor settings. The behavioral logs produced by these apps can be transformed into daily time series characterizing each user's activity. We use probabilistic and survival analysis to build multiple personalized measures of meaningful engagement, which could serve to tailor content and digital interventions suiting each health worker's specific needs. Special attention is given to the problem of detecting churn, understood as a marker of complete disengagement. We discuss the application of our methods to the Indian and Ethiopian users of the Safe Delivery App, a capacity-building tool for skilled birth attendants. This work represents an important step towards a full characterization of user engagement in mobile health applications, which can significantly enhance the abilities of health workers and, ultimately, save lives.

I recently fell in love with Explainable AI (XAI). XAI is a set of methods aimed at making increasingly complex machine learning (ML) models understandable by humans. XAI could help bridge the gap between AI and humans. That is very much needed as the gap is widening. Machine learning is proving incredibly successful in tackling problems from cancer diagnostics to fraud detection.

Using big data to analyze consumer behavior can provide effective decision-making tools for preventing customer attrition (churn) in customer relationship management (CRM). Focusing on a CRM dataset with several different categories of factors that impact customer heterogeneity (i.e., usage of self-care service channels, duration of service, and responsiveness to marketing actions), we provide new predictive analytics of customer churn rate based on a machine learning method that enhances the classification of logistic regression by adding a mixed penalty term. The proposed penalized logistic regression can prevent overfitting when dealing with big data and minimize the loss function when balancing the cost from the median (absolute value) and mean (squared value) regularization. We show the analytical properties of the proposed method and its computational advantage in this research. In addition, we investigate the performance of the proposed method with a CRM data set (that has a large number of features) under different settings by efficiently eliminating the disturbance of (1) least important features and (2) sensitivity from the minority (churn) class. Our empirical results confirm the expected performance of the proposed method in full compliance with the common classification criteria (i.e., accuracy, precision, and recall) for evaluating machine learning methods.

As video games attract more and more players, the major challenge for game studios is to retain them. We present a deep behavioral analysis of churn (game abandonment) and what we called "purchase churn" (the transition from paying to non-paying user). A series of churning behavior profiles are identified, which allows a classification of churners in terms of whether they eventually return to the game (false churners)--or start purchasing again (false purchase churners)--and their subsequent behavior. The impact of excluding some or all of these churners from the training sample is then explored in several churn and purchase churn prediction models. Our results suggest that discarding certain combinations of "zombies" (players whose activity is extremely sporadic) and false churners has a significant positive impact in all models considered.

For a service provider, being able to anticipate its customer's behaviour has three major benefits. It can generate customer delight, prevent customer exhaustion, and improve the company's ROI. Let's look at each of these benefits through three different use cases in the Customer lifecycle: Complaints Management, Customer Upsell and Customer Retention. A dissatisfied customer, filing a complaint is difficult to manage. He is very often passionate about his claim - whether it is justified or not - and there is sometimes little which can be done to change his perception and his opinion towards the service he initially subscribed to.

Customer retention campaigns increasingly rely on predictive models to detect potential churners in a vast customer base. From the perspective of machine learning, the task of predicting customer churn can be presented as a binary classification problem. Using data on historic behavior, classification algorithms are built with the purpose of accurately predicting the probability of a customer defecting. The predictive churn models are then commonly selected based on accuracy related performance measures such as the area under the ROC curve (AUC). However, these models are often not well aligned with the core business requirement of profit maximization, in the sense that, the models fail to take into account not only misclassification costs, but also the benefits originating from a correct classification. Therefore, the aim is to construct churn prediction models that are profitable and preferably interpretable too. The recently developed expected maximum profit measure for customer churn (EMPC) has been proposed in order to select the most profitable churn model. We present a new classifier that integrates the EMPC metric directly into the model construction. Our technique, called ProfTree, uses an evolutionary algorithm for learning profit driven decision trees. In a benchmark study with real-life data sets from various telecommunication service providers, we show that ProfTree achieves significant profit improvements compared to classic accuracy driven tree-based methods.

No - you can't call it a good model. In the domain you are talking about, we are more interested in catching a true churner than catching a true non-churner. Now from your data you can find - if you use the 0.8 as the cutoff - what %of true churners you correctly predict (true ve) and what % of true non-churners you wrongly label as churners (false ve). ROC tells you, what should be your cutoff and to get there how much false ve you need to tolerate.

It is no secret that private banking is in turmoil. While our view is that large banks possess a massive competitive advantage given the amount of data they create, trade in and see – private banking is an area of concern. Technology driven start-ups have made real inroads with millennials and private wealth management growth has stalled at many banks. Given the fixed cost nature of the supporting infrastructure this can quickly eat into earnings. There are a number of areas that banks can focus on, from aligning costs more effectively to enhancing the customer experience – but one chronic and elusive prize is churn.