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Marketing Segmentation


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Use data mining techniques to classify your customers into similar groups. By reviewing the information created from the model you can get insights into customer behavior and patterns.
Once customers clusters are identified targeted marketing campaigns can be created to

Published in: Sales
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Marketing Segmentation

  1. 1. Telco Segmentation CDO Advisors LLC© - 2017
  2. 2. Scenario Setup • You are the part of the operations team for a Telco company and want to leverage data mining techniques to better understand your customers. • You have access to each customers usage data
  3. 3. Business Problems • How can we better understand factors of customer behavior? • How do users of our product leverage different features? • What does the use of features indicate about the type of customer? • Can we create customer segmentations to drive targeted marketing?
  4. 4. What Data Can We Use • For each customer you have at least the following information: • Tenure in days of the current contract • Term of the contract in years • Number of Voicemail messages recorded • Daily Usage in Minutes • Evening Usage in Minutes • Night Usage in Minutes • International Usage in Minutes • Churn indication (0 = No, 1= Yes)
  5. 5. Clustering Algorithm • Creates groupings of data to determine clusters that similar based on the selected data • A model is built to determine the grouping for each data point that are most similar • The resulting data is used to understand your customers
  6. 6. How to Use the Models Results Cluster 0 Lowest Vmail Message High Daily Usage High Nightly Usage More churners Cluster 1 ~91 days in Contract Lowest Daily Usage Medium Evening Usage Lowest Nightly Usage Lowest Churners Cluster 2 Highest days in Contract Medium Daily Usage Lowest Evening Usage Medium Nightly Usage Low Churners Cluster 0 has the most customers that churned. This cluster also has the highest daily and nightly usage. Next steps are to review these customers products and contracts to see if there is a different product or rate to switch to increase retention.
  7. 7. Ready to Build Your First Model? Click on the link to Schedule an Appointment - Book a Meeting Derek Wilson 832-819-5744