A New Approach to Customer Segmentation in the Fixed-line Telecom Using RFM Model

Document Type: Research Paper

Authors

Abstract

In today's competitive
environment, customers are the most important asset to any company. Therefore,
in order to retain customers, it is essential to understand
their
behaviour for developing
effective strategies. One of the most common
methods for customer analysis is market segmentation that helps companies to
develop marketing technique by dividing market into several smaller homogeneous
groups. Optimized
market segmentation based on relevant attributes
help allocating company’s resource. In this paper, we proposed a new
two-dimensional framework, in which customers was measured according to debt
and revenue status
(The combination of both values
​​and anti-values)
, based on RFM model for
segmenting customers in fixed-line telecom. Finally, strategies are presented
for any customer group based on segmentation using data mining techniques.

Keywords