Network-Based Targeting: Big Data Application in Mobile Industry

Network-Based Targeting: Big Data Application in Mobile Industry

Chu (Ivy) Dang (The Chinese University of Hong Kong, China)
DOI: 10.4018/978-1-5225-5187-4.ch025
OnDemand PDF Download:
$30.00
List Price: $37.50

Abstract

This chapter focuses on two kinds of targeting in mobile industry: to target churning customers and to target potential customers. These two targeting strategies are very important goals in Customer Relationship Management (CRM). In the first part of the chapter, the author reviews churn prediction models and its applications. In the second part of the chapter, traditional innovation diffusion models are reviewed and agent-based models are explained in detail. Customers in telecom industry are usually connected by large and complex networks. To understand how network effects and consumer behaviors – such as churning and adopting – interplays with each other is of great significance. Therefore, detailed examples are given to network-based targeting analysis.
Chapter Preview
Top

Background

For any company, customer loyalty is an essential part for profit maximization. To obtain customer loyalty involves two steps: obtaining new costumers and then keep them from churning. The first step is called customer acquisition and the second is customer retention. Actually customer acquisition and customer retention is also the ultimate goal of most marketing strategies. For example, “free trial before buy” is a frequently used marketing strategy to attract new customers. “Membership” is also a common marketing strategy to keep existing customers. To obtain new customers and keep them loyal to the company is especially important for mobile industry in many countries since there are typically many wireless service providers as well as many mobile device providers within a region and customers can easily switch between them.

Complete Chapter List

Search this Book:
Reset