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Effective Classifier for Predicting Churn in Payment Terminals Using RFM model and Deep Neural Network

Authors :

Mahila Dadfarnia¹ Ali Alemi Matinpour² Monireh Abdoos³

1- دانشگاه یزد 2- تربیت مدرس تهران 3- تربیت مدرس تهران

Keywords :

Payment terminals, Churn prediction, RFM (recency, frequency and monetary), DNN (Deep Neural Network), Genetic Algorithms

Abstract :

In recent years, there is remarkable growing concern for marketing team to retain their customers. This can be achieved by predicting accurately ahead of time, whether a terminal for buying is valuable in the foreseeable future or not. This paper presents the application of Deep Neural Network in the issue of classifying the payment terminals in different branches of Parsian bank specifically. The paper uses real data for classifying various payment terminals in 6 classes of terminal by a 5 layer deep neural network and RFM model. The empirical results reveal that utilizing the deep network generate significantly better accuracy in comparison with other popular methods

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