FOCUS ON ARTIFICIAL INTELLIGENCE FOR PREDICTING THE OUTFLOW OF CLIENTS FROM ON-LINE EDUCATION SITES

Array

Authors

  • V. Bredikhin O.M. Beketov National University of Urban Economy in Kharkiv
  • T. Senchuk O.M. Beketov National University of Urban Economy in Kharkiv
  • K. Stuzhuk O.M. Beketov National University of Urban Economy in Kharkiv

Keywords:

customer outflow, business transaction model, Weibull distribution, neural network, machine learning algorithms.

Abstract

The article examines the process of forecasting customer outflows, which is especially important for companies that use a business model based on subscription. It was found that the outflow rate is extremely important for companies with a subscription and transactional business model, which implies regular payments to the company (banks, telecom operators, SaaS-services, etc.). For this purpose, the types, the main reasons for the outflow of customers and the parameters defined to build a predictive model using machine learning algorithms were considered. The result was the hypothesis of the reasons for the outflow of customers from sites that provide training services based on courses that are presented on-line in the Internet space. To build a model of outflow forecasting, the behavioral characteristics of students, their motivation and the structure of the courses themselves were studied. Based on the collected large array of data, their change was analyzed by a large number of parameters and the relationships between the behavioral characteristics of students, course structures and their passage were identified. A variant of the forecasting model was built, for which the accuracy of its operation was increased and the results were integrated into the customer outflow prediction module. The final list of features included more than 100 parameters, which were divided into 6 blocks. As a result, a predictive model was created using the Weibull distribution, as client behavior can be considered as a kind of survival model. To estimate the probability of customer outflow, based on the considered hypotheses, a recurrent neural network with an LSTM layer was developed, where a negative logarithmic likelihood function was used as a loss function for the Weibull distribution. As a conclusion, it was proposed to introduce a stable proactive educational business, when decisions are made not only on the basis of feelings, but also on the basis of data, comes a clearer and more sound understanding of how to improve the educational product.

Author Biographies

V. Bredikhin, O.M. Beketov National University of Urban Economy in Kharkiv

PhD, Associate Professor, Associate Professor of the Department

T. Senchuk, O.M. Beketov National University of Urban Economy in Kharkiv

Senior Lecturer of the Department

K. Stuzhuk, O.M. Beketov National University of Urban Economy in Kharkiv

Student

References

1. Klymenko, N., Voronenko, I., Nahorna, O., Gromyk, N. (2021). Risk assessment in the market of services of mobile operators. Efektyvna ekonomіka, 7. DOI: https://doi.org/10.32702/2307-2105-2021.7.92 [in Ukrainian]
2. Kos, І. (2020). Modern management tools for a consulting company. Proceedings of the 87th Scientific Student Conference “Innovative Ukraine: creative ideas and projects”, 4–13 May 2020. Kyiv, KNEU, 76–78 [in Ukrainian]
3. Customer outflow: causes and remedies. URL: https://fractus.com.ua/uk/blog/korysni-statti/prodazhi/vidtik-kliientiv-prichini-ta-usunennja/ [in Ukrainian]
4. Basic terms and metrics - internet marketing, web analytics and contextual advertising. URL: https://bizautomation.com.ua/internet-marketing-terminu/ [in Ukrainian]
5. Zagarchuk, V., Klym, O., Antokhova, I. (2020). The use of artificial intelligient in trare. International scientific e-journal ΛΌGOΣ. ONLINE, 15. DOI: https://doi.org/10.36074/2663-4139.15.10 [in Ukrainian]
6. Stuzhuk, K.S., Bredіhіn, V.M. (2021). Artificial intelligence to predict the outflow of customers. Proceedings of the VI All-Ukrainian scientific-practical conf. applicants for higher education and young scientists Prospects for the development of territories: theory and practice, 18–19 Nov 2021. [in Ukrainian]

Published

2021-11-30

How to Cite

Bredikhin, V., Senchuk, T., & Stuzhuk, K. (2021). FOCUS ON ARTIFICIAL INTELLIGENCE FOR PREDICTING THE OUTFLOW OF CLIENTS FROM ON-LINE EDUCATION SITES: Array. Municipal Economy of Cities, 6(166), 2–7. Retrieved from https://khg.kname.edu.ua/index.php/khg/article/view/5858

Most read articles by the same author(s)

1 2 > >>