Customer segmentation and analysis of a mobile telecommunication company of Pakistan using two phase clustering algorithm

Abstract

Pakistan hosts a competitive and fluid telecommunication market and for a company to sustain, create customer value and increase economic efficiency, it needs to better understand its customers. The purpose of clustering or customer segmentation is to deliver actionable results for marketing, product development and business planning. In this paper, we focus on customer segmentation using clustering algorithms on real data of a telecommunication company in Pakistan. After choosing appropriate attributes for clustering, we used the two-step clustering algorithm in order to create different customer segments. Moreover, the insights obtained from each segment were analyzed before suggesting marketing strategies for up-selling and better targeted campaigns. © 2013 IEEE.