{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/churn-prediction-with-sequential-data-and","title":"Churn Prediction with Sequential Data and Deep Neural Networks. A Comparative Analysis","arxiv_id":"1909.11114","date":"2019-09-24","proceeding":null,"authors":["C. Gary Mena","Arno De Caigny","Kristof Coussement","Koen W. De Bock","Stefan Lessmann"],"abstract":"Off-the-shelf machine learning algorithms for prediction such as regularized logistic regression cannot exploit the information of time-varying features without previously using an aggregation procedure of such sequential data. However, recurrent neural networks provide an alternative approach by which time-varying features can be readily used for modeling. This paper assesses the performance of neural networks for churn modeling using recency, frequency, and monetary value data from a financial services provider. Results show that RFM variables in combination with LSTM neural networks have larger top-decile lift and expected maximum profit metrics than regularized logistic regression models with commonly-used demographic variables. Moreover, we show that using the fitted probabilities from the LSTM as feature in the logistic regression increases the out-of-sample performance of the latter by 25 percent compared to a model with only static features.","url_abs":"https://arxiv.org/abs/1909.11114v1","url_pdf":"https://arxiv.org/pdf/1909.11114v1.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"churn-prediction-with-sequential-data-and","repo_url":"https://github.com/adamribaudo/ds5500-capstone","is_official":0,"mentioned_in_paper":0,"mentioned_in_github":1,"framework":"none","reach":null}],"tasks":[{"task_slug":"regression-1","task_name":"regression"}],"methods":[{"method_slug":"lstm","method_name":"LSTM"},{"method_slug":"logistic-regression","method_name":"Logistic Regression"},{"method_slug":"sigmoid-activation","method_name":"Sigmoid Activation"},{"method_slug":"tanh-activation","method_name":"Tanh Activation"}],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}