IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v244y2015i1p248-260.html
   My bibliography  Save this article

CRM in social media: Predicting increases in Facebook usage frequency

Author

Listed:
  • Ballings, Michel
  • Van den Poel, Dirk

Abstract

The purpose of this study is to (1) assess the feasibility of predicting increases in Facebook usage frequency, (2) evaluate which algorithms perform best, (3) and determine which predictors are most important. We benchmark the performance of Logistic Regression, Random Forest, Stochastic Adaptive Boosting, Kernel Factory, Neural Networks and Support Vector Machines using five times twofold cross-validation. The results indicate that it is feasible to create models with high predictive performance. The top performing algorithm was Stochastic Adaptive Boosting with a cross-validated AUC of 0.66 and accuracy of 0.74. The most important predictors include deviation from regular usage patterns, frequencies of likes of specific categories and group memberships, average photo album privacy settings, and recency of comments. Facebook and other social networks alike could use predictions of increases in usage frequency to customize its services such as pacing the rate of advertisements and friend recommendations, or adapting News Feed content altogether. The main contribution of this study is that it is the first to assess the prediction of increases in usage frequency in a social network.

Suggested Citation

  • Ballings, Michel & Van den Poel, Dirk, 2015. "CRM in social media: Predicting increases in Facebook usage frequency," European Journal of Operational Research, Elsevier, vol. 244(1), pages 248-260.
  • Handle: RePEc:eee:ejores:v:244:y:2015:i:1:p:248-260
    DOI: 10.1016/j.ejor.2015.01.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715000028
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2015.01.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. K A Smith & R J Willis & M Brooks, 2000. "An analysis of customer retention and insurance claim patterns using data mining: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(5), pages 532-541, May.
    2. Hellmann, Tim & Staudigl, Mathias, 2014. "Evolution of social networks," European Journal of Operational Research, Elsevier, vol. 234(3), pages 583-596.
    3. Buckinx, Wouter & Van den Poel, Dirk, 2005. "Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting," European Journal of Operational Research, Elsevier, vol. 164(1), pages 252-268, July.
    4. Baesens, Bart & Verstraeten, Geert & Van den Poel, Dirk & Egmont-Petersen, Michael & Van Kenhove, Patrick & Vanthienen, Jan, 2004. "Bayesian network classifiers for identifying the slope of the customer lifecycle of long-life customers," European Journal of Operational Research, Elsevier, vol. 156(2), pages 508-523, July.
    5. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 1999. "Subscriber churn in the Australian ISP market," Information Economics and Policy, Elsevier, vol. 11(2), pages 195-207, July.
    6. K. W. De Bock & D. Van Den Poel, 2012. "Reconciling Performance and Interpretability in Customer Churn Prediction using Ensemble Learning based on Generalized Additive Models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/805, Ghent University, Faculty of Economics and Business Administration.
    7. Vera Miguéis & Dirk Poel & Ana Camanho & João Falcão e Cunha, 2012. "Predicting partial customer churn using Markov for discrimination for modeling first purchase sequences," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 6(4), pages 337-353, December.
    8. K.W. de Bock & D. van den Poel, 2012. "Reconciling performance and interpretability in customer churn prediction modeling using ensemble learning based on generalized additive models," Post-Print hal-00800148, HAL.
    9. Friedman, Jerome H. & Hastie, Trevor & Tibshirani, Rob, 2010. "Regularization Paths for Generalized Linear Models via Coordinate Descent," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 33(i01).
    10. Coussement, Kristof & Benoit, Dries Frederik & Van den Poel, Dirk, 2009. "Improved Marketing Decision Making in a Customer Churn Prediction Context Using Generalized Additive Models," Working Papers 2009/18, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    11. K. Coussement & D. Van Den Poel, 2006. "Churn Prediction in Subscription Services: an Application of Support Vector Machines While Comparing Two Parameter-Selection Techniques," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/412, Ghent University, Faculty of Economics and Business Administration.
    12. Martin-Barragan, Belen & Lillo, Rosa & Romo, Juan, 2014. "Interpretable support vector machines for functional data," European Journal of Operational Research, Elsevier, vol. 232(1), pages 146-155.
    13. Glady, Nicolas & Baesens, Bart & Croux, Christophe, 2009. "Modeling churn using customer lifetime value," European Journal of Operational Research, Elsevier, vol. 197(1), pages 402-411, August.
    14. Gómez, Daniel & Figueira, José Rui & Eusébio, Augusto, 2013. "Modeling centrality measures in social network analysis using bi-criteria network flow optimization problems," European Journal of Operational Research, Elsevier, vol. 226(2), pages 354-365.
    15. Peter E. Rossi & Robert E. McCulloch & Greg M. Allenby, 1996. "The Value of Purchase History Data in Target Marketing," Marketing Science, INFORMS, vol. 15(4), pages 321-340.
    16. Verhaert, Griet Alice & Van den Poel, Dirk, 2011. "Improving Campaign Success Rate by Tailoring Donation Requests along the Donor Lifecycle," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 51-63.
    17. D. F. Benoit & D. Van Den Poel, 2012. "Improving Customer Retention In Financial Services Using Kinship Network Information," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/786, Ghent University, Faculty of Economics and Business Administration.
    18. K.W. de Bock & D. van den Poel, 2011. "An empirical evaluation of rotation-based ensemble classifiers for customer churn prediction," Post-Print hal-00800160, HAL.
    19. Van den Poel, Dirk & Buckinx, Wouter, 2005. "Predicting online-purchasing behaviour," European Journal of Operational Research, Elsevier, vol. 166(2), pages 557-575, October.
    20. Venkatesh, Kamini & Ravi, Vadlamani & Prinzie, Anita & Poel, Dirk Van den, 2014. "Cash demand forecasting in ATMs by clustering and neural networks," European Journal of Operational Research, Elsevier, vol. 232(2), pages 383-392.
    21. D J Hand, 2005. "Good practice in retail credit scorecard assessment," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(9), pages 1109-1117, September.
    22. D. Thorleuchter & D. Van Den Poel & A. Prinzie, 2011. "Analyzing existing customers’ websites to improve the customer acquisition process as well as the profitability prediction in B-to-B marketing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/733, Ghent University, Faculty of Economics and Business Administration.
    23. Jörg Claussen & Tobias Kretschmer & Philip Mayrhofer, 2013. "The Effects of Rewarding User Engagement: The Case of Facebook Apps," Information Systems Research, INFORMS, vol. 24(1), pages 186-200, March.
    24. Sinan Aral & Dylan Walker, 2011. "Creating Social Contagion Through Viral Product Design: A Randomized Trial of Peer Influence in Networks," Management Science, INFORMS, vol. 57(9), pages 1623-1639, February.
    25. K. Coussement & D. Van Den Poel, 2008. "Improving Customer Attrition Prediction by Integrating Emotions from Client/Company Interaction Emails and Evaluating Multiple Classifiers," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/527, Ghent University, Faculty of Economics and Business Administration.
    26. Friedman, Jerome H., 2002. "Stochastic gradient boosting," Computational Statistics & Data Analysis, Elsevier, vol. 38(4), pages 367-378, February.
    27. Van den Poel, Dirk & Lariviere, Bart, 2004. "Customer attrition analysis for financial services using proportional hazard models," European Journal of Operational Research, Elsevier, vol. 157(1), pages 196-217, August.
    28. Wesley Hartmann & Puneet Manchanda & Harikesh Nair & Matthew Bothner & Peter Dodds & David Godes & Kartik Hosanagar & Catherine Tucker, 2008. "Modeling social interactions: Identification, empirical methods and policy implications," Marketing Letters, Springer, vol. 19(3), pages 287-304, December.
    29. E Lima & C Mues & B Baesens, 2009. "Domain knowledge integration in data mining using decision tables: case studies in churn prediction," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(8), pages 1096-1106, August.
    30. M. Ballings & D. Van Den Poel, 2012. "The Relevant Length of Customer Event History for Churn Prediction: How long is long enough?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/804, Ghent University, Faculty of Economics and Business Administration.
    31. Lemmens, A. & Croux, C., 2006. "Bagging and boosting classification trees to predict churn," Other publications TiSEM d5cb664d-5859-44db-a621-e, Tilburg University, School of Economics and Management.
    32. V. L. Miguéis & D. Van Den Poel & A.S. Camanho & J. Falcao E Cunha, 2012. "Modeling Partial Customer Churn: On the Value of First Product-Category Purchase Sequences," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/790, Ghent University, Faculty of Economics and Business Administration.
    33. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    34. Dudyala Anil Kumar & V. Ravi, 2008. "Predicting credit card customer churn in banks using data mining," International Journal of Data Analysis Techniques and Strategies, Inderscience Enterprises Ltd, vol. 1(1), pages 4-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bottmer, Lea & Croux, Christophe & Wilms, Ines, 2022. "Sparse regression for large data sets with outliers," European Journal of Operational Research, Elsevier, vol. 297(2), pages 782-794.
    2. Shakeel ul Rehman & Rafia Gulzar & Wajeeha Aslam, 2022. "Developing the Integrated Marketing Communication (IMC) through Social Media (SM): The Modern Marketing Communication Approach," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. Robin Gubela & Artem Bequé & Stefan Lessmann & Fabian Gebert, 2019. "Conversion Uplift in E-Commerce: A Systematic Benchmark of Modeling Strategies," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 747-791, May.
    4. Gattermann-Itschert, Theresa & Thonemann, Ulrich W., 2021. "How training on multiple time slices improves performance in churn prediction," European Journal of Operational Research, Elsevier, vol. 295(2), pages 664-674.
    5. Gubela, Robin & Bequé, Artem & Gebert, Fabian & Lessmann, Stefan, 2018. "Conversion uplift in e-commerce: A systematic benchmark of modeling strategies," IRTG 1792 Discussion Papers 2018-062, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    6. He Jiang, 2022. "A novel robust structural quadratic forecasting model and applications," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(6), pages 1156-1180, September.
    7. Li, Yongli & Luo, Peng & Fan, Zhi-ping & Chen, Kun & Liu, Jiaguo, 2017. "A utility-based link prediction method in social networks," European Journal of Operational Research, Elsevier, vol. 260(2), pages 693-705.
    8. Liu, Zhenyuan & Han, Shuihua & Li, Chao & Gupta, Shivam & Sivarajah, Uthayasankar, 2022. "Leveraging customer engagement to improve the operational efficiency of social commerce start-ups," Journal of Business Research, Elsevier, vol. 140(C), pages 572-582.
    9. Lessmann, Stefan & Coussement, Kristof & De Bock, Koen W. & Haupt, Johannes, 2018. "Targeting customers for profit: An ensemble learning framework to support marketing decision making," IRTG 1792 Discussion Papers 2018-012, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    10. Choi, Tsan-Ming & Guo, Shu & Luo, Suyuan, 2020. "When blockchain meets social-media: Will the result benefit social media analytics for supply chain operations management?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    11. Gubela, Robin M. & Lessmann, Stefan & Jaroszewicz, Szymon, 2020. "Response transformation and profit decomposition for revenue uplift modeling," European Journal of Operational Research, Elsevier, vol. 283(2), pages 647-661.
    12. Matthias Bogaert & Michel Ballings & Dirk Van den Poel, 2018. "Evaluating the importance of different communication types in romantic tie prediction on social media," Annals of Operations Research, Springer, vol. 263(1), pages 501-527, April.
    13. Nada Abdulla Al-Kubaisi, 2023. "The Black Box of Implementing Strategic Decisions," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 14(1), pages 1-21, January.
    14. Xi Chen & Ralf van der Lans & Michael Trusov, 2021. "Efficient Estimation of Network Games of Incomplete Information: Application to Large Online Social Networks," Management Science, INFORMS, vol. 67(12), pages 7575-7598, December.
    15. Sanaz Farhangi & Habib Alipour, 2021. "Social Media as a Catalyst for the Enhancement of Destination Image: Evidence from a Mediterranean Destination with Political Conflict," Sustainability, MDPI, vol. 13(13), pages 1-26, June.
    16. Matthias Bogaert & Lex Delaere, 2023. "Ensemble Methods in Customer Churn Prediction: A Comparative Analysis of the State-of-the-Art," Mathematics, MDPI, vol. 11(5), pages 1-28, February.
    17. Luzon, Yossi & Pinchover, Rotem & Khmelnitsky, Eugene, 2022. "Dynamic budget allocation for social media advertising campaigns: optimization and learning," European Journal of Operational Research, Elsevier, vol. 299(1), pages 223-234.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gattermann-Itschert, Theresa & Thonemann, Ulrich W., 2021. "How training on multiple time slices improves performance in churn prediction," European Journal of Operational Research, Elsevier, vol. 295(2), pages 664-674.
    2. M. Ballings & D. Van Den Poel & E. Verhagen, 2013. "Evaluating the Added Value of Pictorial Data for Customer Churn Prediction," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/869, Ghent University, Faculty of Economics and Business Administration.
    3. Matthias Bogaert & Lex Delaere, 2023. "Ensemble Methods in Customer Churn Prediction: A Comparative Analysis of the State-of-the-Art," Mathematics, MDPI, vol. 11(5), pages 1-28, February.
    4. K. W. De Bock & D. Van Den Poel, 2012. "Reconciling Performance and Interpretability in Customer Churn Prediction using Ensemble Learning based on Generalized Additive Models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/805, Ghent University, Faculty of Economics and Business Administration.
    5. K. W. De Bock & D. Van Den Poel, 2011. "An empirical evaluation of rotation-based ensemble classifiers for customer churn prediction," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/717, Ghent University, Faculty of Economics and Business Administration.
    6. Coussement, Kristof & De Bock, Koen W., 2013. "Customer churn prediction in the online gambling industry: The beneficial effect of ensemble learning," Journal of Business Research, Elsevier, vol. 66(9), pages 1629-1636.
    7. De Caigny, Arno & Coussement, Kristof & De Bock, Koen W., 2018. "A new hybrid classification algorithm for customer churn prediction based on logistic regression and decision trees," European Journal of Operational Research, Elsevier, vol. 269(2), pages 760-772.
    8. Arno de Caigny & Kristof Coussement & Koen W. de Bock & Stefan Lessmann, 2019. "Incorporating textual information in customer churn prediction models based on a convolutional neural network," Post-Print hal-02275958, HAL.
    9. De Caigny, Arno & Coussement, Kristof & De Bock, Koen W. & Lessmann, Stefan, 2020. "Incorporating textual information in customer churn prediction models based on a convolutional neural network," International Journal of Forecasting, Elsevier, vol. 36(4), pages 1563-1578.
    10. Matthias Bogaert & Michel Ballings & Martijn Hosten & Dirk Van den Poel, 2017. "Identifying Soccer Players on Facebook Through Predictive Analytics," Decision Analysis, INFORMS, vol. 14(4), pages 274-297, December.
    11. Verbeke, Wouter & Dejaeger, Karel & Martens, David & Hur, Joon & Baesens, Bart, 2012. "New insights into churn prediction in the telecommunication sector: A profit driven data mining approach," European Journal of Operational Research, Elsevier, vol. 218(1), pages 211-229.
    12. Schaeffer, Satu Elisa & Rodriguez Sanchez, Sara Veronica, 2020. "Forecasting client retention — A machine-learning approach," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    13. Chou, Ping & Chuang, Howard Hao-Chun & Chou, Yen-Chun & Liang, Ting-Peng, 2022. "Predictive analytics for customer repurchase: Interdisciplinary integration of buy till you die modeling and machine learning," European Journal of Operational Research, Elsevier, vol. 296(2), pages 635-651.
    14. Arno de Caigny & Kristof Coussement & Koen de Bock, 2020. "Leveraging fine-grained transaction data for customer life event predictions," Post-Print hal-02507998, HAL.
    15. Coussement, Kristof & Benoit, Dries Frederik & Van den Poel, Dirk, 2009. "Improved Marketing Decision Making in a Customer Churn Prediction Context Using Generalized Additive Models," Working Papers 2009/18, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    16. Aurélie Lemmens & Sunil Gupta, 2020. "Managing Churn to Maximize Profits," Marketing Science, INFORMS, vol. 39(5), pages 956-973, September.
    17. M. Ballings & D. Van Den Poel, 2012. "The Relevant Length of Customer Event History for Churn Prediction: How long is long enough?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/804, Ghent University, Faculty of Economics and Business Administration.
    18. Chen, Zhen-Yu & Fan, Zhi-Ping & Sun, Minghe, 2012. "A hierarchical multiple kernel support vector machine for customer churn prediction using longitudinal behavioral data," European Journal of Operational Research, Elsevier, vol. 223(2), pages 461-472.
    19. Risselada, Hans & Verhoef, Peter C. & Bijmolt, Tammo H.A., 2010. "Staying Power of Churn Prediction Models," Journal of Interactive Marketing, Elsevier, vol. 24(3), pages 198-208.
    20. Koen W. de Bock & Arno de Caigny, 2021. "Spline-rule ensemble classifiers with structured sparsity regularization for interpretable customer churn modeling," Post-Print hal-03391564, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:244:y:2015:i:1:p:248-260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.