An Intelligent CRM System for Identifying High-Risk Customers: An Ensemble Data Mining Approach

  • Authors:
  • Kin Keung Lai;Lean Yu;Shouyang Wang;Wei Huang

  • Affiliations:
  • Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong;Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong and Institute of Systems Science, Academy of Mathematics and Systems Science, Chinese Academy o ...;Institute of Systems Science, Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100080, China;Department of Management Sciences, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong

  • Venue:
  • ICCS '07 Proceedings of the 7th international conference on Computational Science, Part II
  • Year:
  • 2007

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Abstract

In this study, we propose an intelligent customer relationship management (CRM) system that uses support vector machine (SVM) ensembles to help enterprise managers effectively manage customer relationship from a risk avoidance perspective. Different from the classical CRM for retaining and targeting profitable customers, the main focus of our proposed CRM system is to identify high-risk customers for avoiding potential loss. Through experiment analysis, we find that the Bayesian-based SVM ensemble data mining model with diverse components and "choose from space" selection strategy show the best performance over the testing samples.