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Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies

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Resumo:In the highly competitive landscape of retail e-commerce, customer churn poses a significant challenge, undermining profitability and growth. Understanding the drivers of customer churn within supply chain operations can illuminate pathways to enhance operational efficiencies. This study aims to identify critical factors contributing to customer churn in retail e-commerce, leveraging advanced predictive analytics to uncover underlying supply chain inefficiencies. The study followed the CRISP-DM methodology. Four classification models were tested: two single classification methods (Neural Networks and K-Nearest Neighbors) and two ensemble methods (Random Forest and XGBoost). The results revealed that the XGBoost model outperformed the others, demonstrating superior performance across all evaluation metrics. Utilizing the SHAP method, as predicted, it was determined that supply chain variables had the most significant impact on the model's predictions. This finding underscores the critical role of supply chain factors in influencing customer churn rates. This research contributes to the academic literature by integrating predictive analytics of customer churn with supply chain operations. For business practitioners, the implications are insightful. Companies can leverage this insight to optimize their operations and enhance customer retention strategies by identifying specific supply chain inefficiencies that drive customer churn.
Autores principais:Ferreira, Katia Florinda Narcy
Assunto:Customer Churn Machine Learning Supply Chain Ensemble Methods E-commerce Churn Prediction SDG 4 - Quality education SDG 8 - Decent work and economic growth SDG 9 - Industry, innovation and infrastructure
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso embargado
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
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author Ferreira, Katia Florinda Narcy
author_facet Ferreira, Katia Florinda Narcy
Ferreira, Katia Florinda Narcy
author_role author
contributor_name_str_mv António, Nuno Miguel da Conceição
RUN
country_str PT
creators_json_str [{\"Person.name\":\"Ferreira, Katia Florinda Narcy\"}]
datacite.contributors.contributor.contributorName.fl_str_mv António, Nuno Miguel da Conceição
RUN
datacite.creators.creator.creatorName.fl_str_mv Ferreira, Katia Florinda Narcy
datacite.date.Accepted.fl_str_mv 2024-10-31T00:00:00Z
datacite.date.available.fl_str_mv 2027-10-31T00:00:00Z
datacite.date.embargoed.fl_str_mv 2027-10-31T00:00:00Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_f1cf
datacite.subjects.subject.fl_str_mv Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
datacite.titles.title.fl_str_mv Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
dc.contributor.none.fl_str_mv António, Nuno Miguel da Conceição
RUN
dc.creator.none.fl_str_mv Ferreira, Katia Florinda Narcy
dc.date.Accepted.fl_str_mv 2024-10-31T00:00:00Z
dc.date.available.fl_str_mv 2027-10-31T00:00:00Z
dc.date.embargoed.fl_str_mv 2027-10-31T00:00:00Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10362/174692
dc.language.none.fl_str_mv eng
dc.rights.cclincense.fl_str_mv http://creativecommons.org/licenses/by/4.0/
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_f1cf
dc.subject.none.fl_str_mv Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
dc.title.fl_str_mv Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_bdcc
description In the highly competitive landscape of retail e-commerce, customer churn poses a significant challenge, undermining profitability and growth. Understanding the drivers of customer churn within supply chain operations can illuminate pathways to enhance operational efficiencies. This study aims to identify critical factors contributing to customer churn in retail e-commerce, leveraging advanced predictive analytics to uncover underlying supply chain inefficiencies. The study followed the CRISP-DM methodology. Four classification models were tested: two single classification methods (Neural Networks and K-Nearest Neighbors) and two ensemble methods (Random Forest and XGBoost). The results revealed that the XGBoost model outperformed the others, demonstrating superior performance across all evaluation metrics. Utilizing the SHAP method, as predicted, it was determined that supply chain variables had the most significant impact on the model's predictions. This finding underscores the critical role of supply chain factors in influencing customer churn rates. This research contributes to the academic literature by integrating predictive analytics of customer churn with supply chain operations. For business practitioners, the implications are insightful. Companies can leverage this insight to optimize their operations and enhance customer retention strategies by identifying specific supply chain inefficiencies that drive customer churn.
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institution Universidade Nova de Lisboa
instname_str Universidade Nova de Lisboa
language eng
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network_name_str Repositório Institucional da UNL
oai_identifier_str oai:run.unl.pt:10362/174692
organization_str_mv urn:organizationAcronym:unl
person_str_mv Ferreira, Katia Florinda Narcy
publishDate 2024
reponame_str Repositório Institucional da UNL
repository_id_str urn:repositoryAcronym:run
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spelling engpt_PTIn the highly competitive landscape of retail e-commerce, customer churn poses a significant challenge, undermining profitability and growth. Understanding the drivers of customer churn within supply chain operations can illuminate pathways to enhance operational efficiencies. This study aims to identify critical factors contributing to customer churn in retail e-commerce, leveraging advanced predictive analytics to uncover underlying supply chain inefficiencies. The study followed the CRISP-DM methodology. Four classification models were tested: two single classification methods (Neural Networks and K-Nearest Neighbors) and two ensemble methods (Random Forest and XGBoost). The results revealed that the XGBoost model outperformed the others, demonstrating superior performance across all evaluation metrics. Utilizing the SHAP method, as predicted, it was determined that supply chain variables had the most significant impact on the model's predictions. This finding underscores the critical role of supply chain factors in influencing customer churn rates. This research contributes to the academic literature by integrating predictive analytics of customer churn with supply chain operations. For business practitioners, the implications are insightful. Companies can leverage this insight to optimize their operations and enhance customer retention strategies by identifying specific supply chain inefficiencies that drive customer churn.application/pdfpt_PTUsing Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain InefficienciesFerreira, Katia Florinda NarcyAntónio, Nuno Miguel da ConceiçãoHostingInstitutionOrganizationalRUNe-mailmailto:run@unl.ptrun@unl.ptURNurn:tid:2037787902024-10-312027-10-31T00:00:00Z2024-10-31T00:00:00ZHandlehttp://hdl.handle.net/10362/174692http://purl.org/coar/access_right/c_f1cfembargoed accessCustomer ChurnMachine LearningSupply ChainEnsemble MethodsE-commerceChurn PredictionSDG 4 - Quality educationSDG 8 - Decent work and economic growthSDG 9 - Industry, innovation and infrastructure722523 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesis2024-10-31http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_f1cfapplication/pdffulltexthttps://run.unl.pt/bitstreams/23d2818a-c0b9-4c75-884d-2edf0f329ea6/download
spellingShingle Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
Ferreira, Katia Florinda Narcy
Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
Ferreira, Katia Florinda Narcy
Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
status NEW
subject.fl_str_mv Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
title Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
title_full Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
title_fullStr Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
title_full_unstemmed Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
title_short Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
title_sort Using Machine Learning in E-commerce to Predict Customer Churn and Identify Supply Chain Inefficiencies
topic Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
topic_facet Customer Churn
Machine Learning
Supply Chain
Ensemble Methods
E-commerce
Churn Prediction
SDG 4 - Quality education
SDG 8 - Decent work and economic growth
SDG 9 - Industry, innovation and infrastructure
url http://hdl.handle.net/10362/174692
visible 1