Telecom Customer Segmentation Using K-Means and Two-Step Clustering Algorithm
Salar Masood, Moaz Ali, Faryal Arshad, Ali Mustafa Qamar, Aatif Kamal, Ahsan Rehman, Summaya Mumtaz, Khurram Javed
Journal of Information Technology Review, Vol. 4, No. 4, 2013.
DOI: 
Link: http://www.dline.info/jitr/fulltext/v4n4/4.pdf
Abstract:
Pakistan hosts a competitive and fluid telecommunication market and for a company to sustain, create customer value and increase economic efficiency, it needs to better understand its customers. The purpose of clustering or customer segmentation is to deliver actionable results for marketing, product development and business planning. In this paper, we focus on customer segmentation using clustering algorithms on real data of a telecommunication company in Pakistan. After choosing appropriate attributes for clustering, we used two-step clustering algorithm and k-Means algorithm for creating different customer segments. The results of both algorithms are compared and the insights obtained from each segment were analyzed before suggesting marketing strategies.