Customer churn presents a particularly vexing problem for businesses; every company loses clients or customers over time. It's no wonder that companies are pouring money and time into this issue, we've all heard that it's less costly to retain a customer than to attract a new one. Let's take the wireless telecommunications industry as an example. In 2003, the wireless telecom industry had 20-40% of customers leaving their provider in a given year. As once-explosive subscriber growth rates slowed down, retaining existing customers became increasingly important to a company's overall profitability. Currently, annual churn rates for telecommunications companies average between 10-67%. If the customers who are likely to churn can be identified, the company can target them with retention campaigns, giving them an incentive to stay and preventing loss of revenue.Read More
Our CEO and founder, Dr. Dan Steinberg recently wrote about gradient boosting machines. Gradient boosting machines are a powerful machine learning technique, and have been deployed with great success over the years in Kaggle competitions.Read More
When beginning a data analysis project, analysts often discover that the data as presented or made available is not ready for analysis. The reasons for this lack of readiness could be many, including:
In SPM v7.0 (Salford Systems' latest product release) one of the new features available in the TreeNet component (Ultra version) is the ability to build Random Forests models. By building the model in the TreeNet engine, you're able to take advantage of the powerful technology offered by gradient-boosted trees.
Salford Systems recently attended the Predictive Analytics World (PAW) conference in San Francisco as a sponsor. Manning the exhibit booth was yours truly, and I was fortunate to meet many analysts, predictive modelers, and data scientists of all experience levels. Even though this is always an entertaining break from every-day office life, my favorite part of the conference was being able to participate in a workshop offered by Dean Abbott, President of Abbott Analytics, entitled "Supercharging Prediction: Hands-On With Ensembles Models."
This week's blog article features a great entry-level tutorial video on how to build predictive models with TreeNet stochastic gradient boosting. Check it out, enjoy, and share your comments!