Telco customer top-ups: Stream-based multi-target regression

Telecommunication operators compete not only for new clients, but, above all, to maintain current ones. The modelling and prediction of the top-up behaviour of prepaid mobile subscribers allows operators to anticipate customer intentions and implement measures to strengthen customer relationship. This research explores a data set from a Portuguese operator, comprising 30 months of top-up events, to predict the top-up monthly frequency and average value of prepaid subscribers using offline and online multi-target regression algorithms. The offline techniques adopt a monthly sliding window, whereas the online techniques use an event sliding window. Experiments were performed to determine the most promising set of features, analyse the accuracy of the offline and online regressors and the impact of sliding window dimension. The results show that online regression outperforms the offline counterparts. The best accuracy was achieved with adaptive model rules and a sliding window of 500,000 events (approximately 5 months). Finally, the predicted top-up monthly frequency and average value of each subscriber were converted to individual date and value intervals, which can be used by the operator to identify early signs of subscriber disengagement and immediately take pre-emptive measures.