Customer segmentation based on the value of consumption patterns in telecommunications
Customer segmentation based on the value of consumption patterns in telecommunications

Summary/Abstract: The purpose of relationship marketing is to maintain clients and increase their loyalty. In order to attain these objectives, mobile operators must identify subscriber segments and provide services that best suit their needs. This study aims to identify behaviour patterns among the prepaid subscribers of a mobile operator. The aim of the analysis is to carry out a segmentation of subscribers based on their spending of credit on local or international calls, SMSs and data. The K-mean cluster analysis was applied to group subscribers in segments. The average sum of squares error indicator was used to determine the internal cohesion of clusters, and, to identify the differences between clusters, the ANOVA and Tukey post-hoc tests were utilised. The study led to the identification of nine subscriber segments with different behaviour, the results obtained offering the mobile operator the possibility to better adapt their marketing strategies to their subscribers’ needs

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