Handling imbalance data in churn prediction using combined SMOTE and RUS with bagging method

Customer churn has become a significant problem and also a challenge for Telecommunication company such as PT. Telkom Indonesia. It is necessary to evaluate whether the big problems of churn customer and the company's managements will make appropriate strategies to minimize the churn and retaining the customer. Churn Customer data which categorized churn Atas Permintaan Sendiri (APS) in this Company is an imbalance data, and this issue is one of the challenging tasks in machine learning. This study will investigate how is handling class imbalance in churn prediction using combined Synthetic Minority Over-Sampling (SMOTE) and Random Under-Sampling (RUS) with Bagging method for a better churn prediction performance's result. The dataset that used is Broadband Internet data which is collected from Telkom Regional 6 Kalimantan. The research firstly using data preprocessing to balance the imbalanced dataset and also to select features by sampling technique SMOIE and RUS, and then building churn prediction model using Bagging methods and C4.5.