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Revenue recovering with insolvency prevention on a Brazilian telecom operator

Published: 01 June 2006 Publication History

Abstract

This paper deals with a real application on a brazilian telephone company. Data mining analysis, based on neural networks, was performed on the customer base in order to understand and to prevent bad debt events. This paper describes the knowledge discovering process and focuses on two main products: the cluster analysis of the customer base and a bad debt event classification model. The segmentation of the customer base has provided a better understanding of several groups of customers' behavior. Distinct actions are taken, depending on the segment a given client was put in, according to strategic directions of the company. The classification of insolvent customers is used as a tool to help the company to take preventing actions in order to avoid main losses and taxes leakage. The results of the project's implantation show that investment on information technology infra-structure for data mining is highly profitable.

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Published In

cover image ACM SIGKDD Explorations Newsletter
ACM SIGKDD Explorations Newsletter  Volume 8, Issue 1
June 2006
104 pages
ISSN:1931-0145
EISSN:1931-0153
DOI:10.1145/1147234
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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 01 June 2006
Published in SIGKDD Volume 8, Issue 1

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Author Tags

  1. customer relationship management
  2. insolvency detection
  3. neural networks
  4. revenue recovering

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