Exploring business opportunities from mobile services data of customers: An inter-cluster analysis approach

Authors:
Indranil Bose;Xi Chen
Affiliations:
School of Business, The University of Hong Kong, Pokfulam Road, Hong Kong, Hong Kong;Department of Management Science and Engineering, School of Management, Zi Jin Gang Campus, Zhejiang University, Hangzhou 310000, PR China
Venue:
Electronic Commerce Research and Applications
Year:
2010

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Abstract

We use customer clustering to explore the behavioral patterns of customers who subscribe to mobile services. Two clustering techniques, K-means and KVQ, are used to cluster customers using knowledge about attributes that are broadly grouped under usage, revenue, services, and user categories. We used inter-cluster analysis on the clusters generated from the two techniques to compare the distribution of customers among the different categories of attributes. We observed that it was important to use multiple techniques for clustering. Our analysis discovered several interesting facts about customers, such as the imbalance between customers' usage of mobile services, subscriptions to services, and revenue contributions. These knowledge nuggets could enable mobile service providers to better align their marketing strategies with the needs of customers.