The measurement of customer value has become a key issue for developing and maintaining successful customer relationship. To measure the value of each customer, it is necessary to consider not only the direct monetary term but also the potential customer value. In this paper, we propose a multi-attribute customer evaluation procedure for mobile telecommunication subscribers. At first, customers are clustered using a single linkage clustering method, then each segment is evaluated based on data envelopment analysis (DEA), which is frequently applied for multi-attribute evaluation problem. Finally, neural network model is used to evaluate each individual customer's value based on DEA results. The proposed method is applied to the mobile telecommunication subscriber data. It is expected that telecommunication companies can focus on target marketing to maximize the overall profit based on the efficiency score of customers.
Bibliographical noteFunding Information:
This work was supported by grant No. (R04-2002-000-20003-0) from the Basic Research Program of the Korea Science & Engineering Foundation.
All Science Journal Classification (ASJC) codes
- Computer Science Applications
- Artificial Intelligence