Cross-selling models for telecommunication services

Abstract

Cross-selling is a strategy of selling new products to a customer who has made other purchases earlier. Except for the obvious profit from extra products sold, it also increases the dependence of the customer on the vendor and therefore reduces churn. This is especially important in the area of telecommunications, characterized by high volatility and low customer loyalty. The paper presents two cross-selling approaches: one based on classifiers and another one based on Bayesian networks constructed based on interesting asso- ciation rules. Effectiveness of the methods is validated on synthetic test data.