Cost-Sensitive-Data Preprocessing for Mining Customer Relationship Management Databases
January/February 2007 (vol. 22 no. 1)
pp. 46-51
Telecommunications companies and financial institutions are facing increasing competition. A staged preprocessing framework for cost-sensitive-data processing can help these companies identify customers who might switch to a competitor (or churn). The framework gives users an intuitive idea of the data distribution using a self-organizing map and then uses a cost matrix to help convert the data with an improved equidepth discretization method. The preprocessed data set can be input to any classifier. When tested on the KDD Cup 1998 data set, the framework performed better than the competition's winner. It has also been implemented in a software product called ED-Money and applied to a Chinese mobile telecommunication data set.
Index Terms:
data mining, cost-sensitive-data preprocessing, ensemble of classifiers
Citation:
Junfeng Pan, Qiang Yang, Yiming Yang, Lei Li, Frances Tianyi Li, George Wenmin Li, "Cost-Sensitive-Data Preprocessing for Mining Customer Relationship Management Databases," IEEE Intelligent Systems, vol. 22, no. 1, pp. 46-51, Jan./Feb. 2007, doi:10.1109/MIS.2007.7