Consumption-based segmentation: An analysis of a telecom company’s customers
Consumption-based segmentation: An analysis of a telecom company’s customers

Summary/Abstract: The scope of relationship marketing is to retain customers and increase their loyalty. To this end, companies need to tailor their services to match the demands of their clients, which is made possible via proper segmentation of the customers. This study is aiming to identify the behavioural patterns of prepaid subscribers of a telecommunications company. The analysis will segment customers based on the way they use their credit to make calls, send SMS or navigate on the Internet. Customer segments were drawn via the K-mean cluster analysis. To assess the internal cohesion of the clusters we employed the average sum of squares error indicator, and to determine the differences among clusters we used the ANOVA and the post-hoc Tukey tests. The study led to the identification of seven customer segments with different behaviours, results enabling the telecom company to adjust its marketing efforts to suit its subscribers‘ needs.

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