Understanding Customer Insight by Segmenting, Profiling, and Churn Analysis in Mobile Telecommunication

Abstract

As the telecommunication industry has rapidly developed, it may cause tighter competition among providers. Accurate customer analysis such segmentation, profiling, and churn analysis are the appropriate tools to encounter this challenge. Providers compete fiercely to each other in acquiring new subscribers and retaining the existing ones to raise profitability. To gain high value customer, providers need to know well about their customers; what they wants and what they needs. So that it is necessary to classify subscribers in several segments and profile them according to desirable criteria. Moreover, provider also has to recognize the predominant factors influence customer churn. Conventional statistical methods such Logistic Regression is very successful in predicting customer into churner or non-churner. Furthermore it is needed to accommodate changes of customer characteristics by forecasting the time of ‘churner’ predicted churn using survival analysis. It is possible to diagnose and repair the root causes of customer resignation and dissatisfaction based on logistic regression and survival analysis.