Customer Churn Prevention: A Prescriptive Solution Using Deep Learning
Mar 15, 2021 • 10 min read
Mar 15, 2021 • 10 min read
As we explained in our introduction to this series of posts, we are exploring a data scientist’s methods of extracting hidden patterns and meanings from big data in order to make better applications, services, and business decisions. We will perform a simple sentiment analysis of a real public tweet stream, and explain the data science process.
In this blog post, we discuss the general-purpose scientific process behind data science and how it was applied to our project.
A good place to start is a quick review of the glossary of basic terms from the data science domain we’ll be using throughout the project:
Specifically, in the context of our project, definitions of our terms:
Before the trendy phrase “data science” captured the imagination of the industry, there was a mature discipline — data mining — that concerned itself with similar questions. Since every data mining project followed the same patterns, good folks created a Cross Industry Standard Process for Data Mining or simply CRISP-DM. It includes six phases: Business Understanding, Data Understanding, Data Preparation, Modeling, Evaluation, and Deployment. The diagram below shows the sequence of phases and reflects the iterative nature of the design process:
This approach is simple and pragmatic — and useful in explaining the scientific process behind the work of data scientists. This is the process we use in our project as well. Below, we’ll discuss how our understanding of social sentiment analysis has progressed from business understanding to data understanding to data preparation to data modeling, evaluation of the models, and, ultimately, a scalable implementation of machine learning.
Specifically, this process is applied in the following way:
To formulate a precise business problem that will be solved by the predictive model, it is critical to understand data sources and the structure of the data itself, and formulate a set of hypothesis of what range of business business “questions” can be answered predictively. This is an iterative process — initial analysis of the data leads to an initial formulation of the business problem and a hypothesis of how that problem can be solved. As the project matures, more is known about the data and the model’s predictive powers, and a more refined understanding of the business applications of predictive modeling emerges.
In our case, the team will begin by looking at samples of tweets related to movies to formulate a set of assumptions about what kind of models can be used, and what kind of business questions these models can answer. For example, the decision to segment the population of Twitter users into “power groups” based on the number of followers so that the business can distinguish the sentiments of highly influential individuals (with over 5,000 followers) from non-influential ones (fewer than 500) came pretty late in the project and altered the business understanding, and thus the way the models were used.
Study samples of the data to answer critical questions about this data’s structure; sources; volumes; frequency; fields that are critical, promising or irrelevant; security; accessibility, and so on. In our case, this means initially studying the structure of Twitter streams to learn enough to begin building data dictionaries and training data sets. As the project progresses, understanding of the data grows and so does the quality of the training data sets and the performance of the model.
For starters, we will assume that every tweet attributed to movie X can be measured on a numeric scale between positive and negative sentiment. The scale depends on the model employed. It will be either a probability (0;1) or a sentiment score (-∞;+∞). Our models will produce that measure for every tweet.
Data is never as “clean” and error-free as we would like it to be. Common offenses include
The goal of the data preparation stage is to identify data quality issues and write code that automatically detects data quality problems and corrects them
The process typically begins by choosing one or more models from a standard library of mathematical models that are deemed the most “promising” based on the hypotheses generated in the previous stages. Subsequently, systematic training and tuning leads to the gradual improvement of the models’ performance. This tends to be an iterative process. Based on the performance of the models, the team will likely need to go back and revisit the assumptions from the data understanding or even business understanding states. After some number of iterations, the models start producing increasingly more promising results until they eventually become good enough to be production-worthy.
Evaluation of the models’ performance and assessment of whether it is adequate to meet the business objectives. For example, a model that delivers 70% accuracy in predictions might be “good enough” for some applications but not for others. If the accuracy is deemed insufficient or there are still promising hypotheses on how the accuracy might be improved to deliver better business results, the team goes back to the data preparation / modeling stages. Once a model and its results have been validated and deemed acceptable by the business team, the data science team is ready to go further and productize the solution.
Now the job of the data scientists is complete and the software developers’ job begins. In order to implement the model at scale, it needs to change from a data scientist’s tool into production-ready code running on a scalable platform. Developers can then use technologies like Hadoop, Kafka, Spark Streaming, Cassandra, Tableau and others to capture data streams, run thousands of concurrent events through the model, persist all intermediate and final results to survive any failures, and ultimately deliver resulting insights to different business systems that will use them.
After the model is up and running, delivering the algorithmic discovery of business insights and application of those insights to marketing, sales and operations, the data science team continues to refine the model, identify more insights, and drive new business applications.
Armed with CRISP-DM methodology, we are ready to take you step by step through the process of creating predictive sentiment analytics system for real-time social movie reviews and attempt to tackle the following business problem:
Based on tweets from the English-speaking population of the United States related to selected new movie releases, can we identify patterns in the public’s sentiments towards these movies in real -time and track the progression of these sentiments over time?
Our quest begins with data understanding part of our data science process.
Victoria Livschitz, Anton Ovchinnikov, Joseph Gorelik