An Approach to Churn Prediction for Cloud Services Recommendation and User Retention

Abstract

The digital world is very dynamic. The ability to timely identify possible vendor migration trends or customer loss risks is very important in cloud-based services. This work describes a churn risk prediction system and how it can be applied to guide cloud service providers for recommending adjustments in the service subscription level, both to promote rational resource consumption and to avoid CSP customer loss. A training dataset was built from real data about the customer, the subscribed service and its usage history, and it was used in a supervised machine-learning approach for prediction. Classification models were built and evaluated based on multilayer neural networks, AdaBoost and random forest algorithms. From the experiments with our dataset, the best results for a churn prediction were obtained with a random forest-based model, with 64 estimators, having 0.988 accuracy and 0.997 AUC value.

Keywords

• machine learning
• churn
• decision analysis
• forecasting