Profit driven decision trees for churn prediction

Sebastiaan Höppner, Eugen Stripling, Bart Baesens, Seppe vanden Broucke, Tim Verdonck

Abstract: Highlights•Model selection based on accuracy measures leads to less profitable results.•Profit driven decision trees enhance outcomes for customer retention campaigns.•Profit maximizing decision trees identify the most valuable would-be churners.•Profit driven decision trees provide better insights for retention campaigns.