Telecom customer segmentation based on cluster analysis

Abstract

Telecom industry is a typical data-intensive industry where data mining applications will enable a good guidance on marketing strategies, and the cluster analysis can be used in customer segmentation. The paper makes a detailed and comprehensive analysis of classic K-means clustering algorithm, and proposes the modeling process for telecom customer segmentation according to the principle of the algorithm. A resolution of customer segmentation for the Changzhou telecom in Jiangsu province is proposed, and practical results show that the clustering technology based on the K-means method provides an effective and successful resolution of customer segmentation for Telecom, bringing services closer to the customers.

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