Skip to main content

Towards Explainable Direct Marketing in the Telecom Industry Through Hybrid Machine Learning

  • Conference paper
  • First Online:

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 12254))

Abstract

Direct marketing enables businesses to identify customers that could be interested in product offerings based on historical customer transactions data. Several machine learning (ML) tools are currently being used for direct marketing. However, the disadvantage of ML algorithmic models is that even though results could be accurate, they lack relevant explanations. The lack of detailed explanations that justify recommendations has led to reduced trust in ML-based recommendations for decision making in some critical real-world domains. The telecommunication domain has continued to witness a decline of revenue in core areas such as voice and text messaging services which make direct marketing useful to increase profit. This paper presents the conceptual design of a machine learning process framework that will enable telecom subscribers that should be targeted for direct marketing of new products to be identified, and also provide explanations for the recommendations. To do this, a hybrid framework that employs supervised learning, case-based reasoning and rule-based reasoning is proposed. The operational workflow of the framework is demonstrated with an example, while the plan of implementation and evaluation are also discussed.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Alanen, A.: Efficient direct marketing: Case: Valtapinnoite Oy (2016)

    Google Scholar 

  2. Yu, C., Zhang, Z., Lin, C., Wu, Y.J.: Can data-driven precision marketing promote user ad clicks? Evidence from advertising in WeChat moments. Ind. Mark. Manage. (2019). https://doi.org/10.1016/j.indmarman.2019.05.001

    Article  Google Scholar 

  3. Erel, I., Stern, L.H., Tan, C., Weisbach, M.S.: Selecting directors using machine learning (No. w24435). National Bureau of Economic Research (2018)

    Google Scholar 

  4. Guidotti, R., Monreale, A., Ruggieri, S., Turini, F., Giannotti, F., Pedreschi, D.: A survey of methods for explaining black box models. ACM Comput. Surv. (CSUR) 51(5), 1–42 (2018)

    Article  Google Scholar 

  5. Gordon, J., Perrey, J., Spillecke, D.: Big data, analytics and the future of marketing and sales. Digital Advantage, McKinsey (2013)

    Google Scholar 

  6. Bonacina, M.: Automated reasoning for explainable artificial intelligence. In The First International ARCADE (Automated Reasoning: Challenges, Applications, Directions, Exemplary Achievements) Workshop (in association with CADE-26), Gothenburg, Sweden (2017)

    Google Scholar 

  7. Goebel, R., et al.: Explainable AI: the new 42? In: Holzinger, A., Kieseberg, P., Tjoa, A.M., Weippl, E. (eds.) CD-MAKE 2018. LNCS, vol. 11015, pp. 295–303. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-99740-7_21

    Chapter  Google Scholar 

  8. Vantara, H., Kalakota, R., Partner, LiquidHub: Transform Telecom: A Data-Driven Strategy for Digital Transformation, White Paper, Hitachi Vantara (2019)

    Google Scholar 

  9. Beheshtian-Ardakani, A., Fathian, M., Gholamian, M.: A novel model for product bundling and direct marketing in e-commerce based on market segmentation. Decis. Sci. Lett. 7(1), 39–54 (2018)

    Article  Google Scholar 

  10. Flici, A.: A conceptual framework for the direct marketing process using business intelligence (Doctoral dissertation, Brunel University Brunel Business School Ph.D. theses) (2011)

    Google Scholar 

  11. Buttle, F., Maklan, S.: Customer Relationship Management: Concepts and Technologies. Routledge, Abingdon (2019)

    Book  Google Scholar 

  12. Pereira, F.C., Borysov, S.S.: Machine learning fundamentals. In: Mobility Patterns, Big Data and Transport Analytics, pp. 9–29. Elsevier (2019)

    Google Scholar 

  13. Daramola, O., Stålhane, T., Omoronyia, I., Sindre, G.: Using ontologies and machine learning for hazard identification and safety analysis. In: Maalej, W., Thurimella, A. (eds.) Managing requirements knowledge, pp. 117–141. Springer, Heidelberg (2013). https://doi.org/10.1007/978-3-642-34419-0_6

    Chapter  Google Scholar 

  14. Vásquez-Morales, G., Martínez-Monterrubio, S., Moreno-Ger, P., Recio-García, J.: Explainable prediction of chronic renal disease in the colombian population using neural networks and case-based reasoning. IEEE Access 7, 152900–152910 (2019)

    Article  Google Scholar 

  15. Wisaeng, K.: A comparison of different classification techniques for bank direct marketing. Int. J. Soft Comput. Eng. (IJSCE) 3(4), 116–119 (2013)

    Google Scholar 

  16. Nachev, A.: Application of data mining techniques for direct marketing. In: Computational Models for Business and Engineering Domains, pp. 86–95 (2015)

    Google Scholar 

  17. Lawi, A., Velayaty, A.A., Zainuddin, Z.: On identifying potential direct marketing consumers using adaptive boosted support vector machine. In: 2017 4th International Conference on Computer Applications and Information Processing Technology (CAIPT), pp. 1–4. IEEE (2017)

    Google Scholar 

  18. Ruangthong, P., Jaiyen, S.: Bank direct marketing analysis of asymmetric information based on machine learning. In: 2015 12th International Joint Conference on Computer Science and Software Engineering (JCSSE), pp. 93–96. IEEE (2015)

    Google Scholar 

  19. Karim, M., Rahman, R.: Decision tree and Naïve Bayes algorithm for classification and generation of actionable knowledge for direct marketing. J. Softw. Eng. Appl. 6, 196–206 (2013)

    Article  Google Scholar 

  20. Bayoude, K., Ouassit, Y., Ardchir, S., Azouazi, M.: How machine learning potentials are transforming the practice of digital marketing: state of the art. Period. Eng. Nat. Sci. 6(2), 373–379 (2018)

    Google Scholar 

  21. Lian-Ying, Z., Amoh, D.M., Boateng, L.K., Okine, A.A.: Combined appetency and upselling prediction scheme in telecommunication sector using support vector machines. Int. J. Mod. Educ. Comput. Sci. 11(6), 1 (2019)

    Article  Google Scholar 

  22. Castanedo, F., Valverde, G., Zaratiegui, J., Vazquez, A.: Using deep learning to predict customer churn in a mobile telecommunication network (2014)

    Google Scholar 

  23. Chen, C.: Use cases and challenges in telecom big data analytics. APSIPA Trans. Sig. Inf. Process. 5, e19 (2016)

    Google Scholar 

  24. Dieterle, S., Bergmann, R.: A hybrid CBR-ANN approach to the appraisal of internet domain names. In: Lamontagne, L., Plaza, E. (eds.) ICCBR 2014. LNCS (LNAI), vol. 8765, pp. 95–109. Springer, Cham (2014). https://doi.org/10.1007/978-3-319-11209-1_8

    Chapter  Google Scholar 

  25. Hegdal, S.S., Kofod-Petersen, A.: A CBR-ANN hybrid for dynamic environments. In: CEUR Workshop Proceedings (2019)

    Google Scholar 

  26. Dabowsa, N.I.A., Amaitik, N.M., Maatuk, A.M., Aljawarneh, S.A.: A hybrid intelligent system for skin disease diagnosis. In: 2017 International Conference on Engineering and Technology (ICET), pp. 1–6. IEEE (2017)

    Google Scholar 

  27. Biswas, S.K., Sinha, N., Purakayastha, B., Marbaniang, L.: Hybrid expert system using case based reasoning and neural network for classification. Biol. Inspired Cognit. Archit. 9, 57–70 (2014)

    Google Scholar 

  28. Musa, A.G., Daramola, O., Owoloko, E.A., Olugbara, O.O.: A neural-CBR system for real property valuation. J. Emerg. Trends Comput. Inf. Sci. 4(8), 611–622 (2013)

    Google Scholar 

  29. Du, M., Liu, N., Hu, X.: Techniques for interpretable machine learning. Commun. ACM 63(1), 68–77 (2019)

    Article  Google Scholar 

  30. Hyseni, L., Dika, Z.: An integrated framework of conceptual modelling for performance improvement of the information systems. In: 2017 Seventh International Conference on Innovative Computing Technology (INTECH), pp. 174–180. IEEE (2017)

    Google Scholar 

  31. Couronné, R., Probst, P., Boulesteix, A.: Random forest versus logistic regression: a large-scale benchmark experiment. BMC Bioinform. 19(1), 270 (2018). https://doi.org/10.1186/s12859-018-2264-5

    Article  Google Scholar 

  32. Ouedraogo, I., Defourny, P., Vanclooster, M.: Application of random forest regression and comparison of its performance to multiple linear regression in modelling groundwater nitrate concentration at the African continent scale. Hydrogeol. J. 27(3), 1081–1098 (2019). https://doi.org/10.1007/s10040-018-1900-5

    Article  Google Scholar 

  33. Bach, K., Mathisen, B.M., Jaiswal, A. Demonstrating the myCBR Rest API. https://iccbr2019.com/wp-content/uploads/2019/09/01_paper_Demonstrating_the_myCBR_REST_API.pdf

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Olawande Daramola .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Petersen, R., Daramola, O. (2020). Towards Explainable Direct Marketing in the Telecom Industry Through Hybrid Machine Learning. In: Gervasi, O., et al. Computational Science and Its Applications – ICCSA 2020. ICCSA 2020. Lecture Notes in Computer Science(), vol 12254. Springer, Cham. https://doi.org/10.1007/978-3-030-58817-5_35

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-58817-5_35

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-58816-8

  • Online ISBN: 978-3-030-58817-5

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics