Telecommunications Industry, Individual Customer Value Evaluation

As an important resource, customer brings enterprises not only the competitiveness but also major guarantee for longtime profits. Therefore, the competition for valuable customers has become a new developing direction. To enterprises, customer value research aims to do quantitative analysis of customer behavior data using scientific methods and to mine the current and future contributions of different types of customers, thus to recognize customer value and make varied marketing strategies, so as to gain most benefits during the gambling for customer resources.Considering the increasing fierce competition of the telecommunication industry, it's important to assess and enhance customer value, in order to maximize customer lifetime value. The existing evaluation methods are mainly ARPU and Accumulation Score methods. However, there are certain flaws while using these two methods in measuring the value of the telecommunication customers.In recent years, with the development of mobile telecommunication and internet technology, the telecommunication industry's traditional business revenue has also undergone a drastic change. Data communication business has made higher growth rate than traditional voice communication business. Earlier domestic and foreign experts on customer value especially customer value evaluation mainly concentrated on traditional voice business. Therefore, under new circumstances, how to improve the customer value evaluation model for telecommunication industry has become an urgent problem to be solved.This paper begins with introduction of the present situation of telecommunication industry and brief description of the customer value definition and related theory. Then, the article focuses on the customer value and evaluation system of telecommunication industry. Based on the former research by QI Jiayin on evaluation model, considering both data and voice service business, the paper proposes an improved single customer value evaluation weight index model.Then after, according to the improved single customer value evaluation weight model, the author does empirical data analysis of the China Unicom G branch. During the analysis, the author uses Quick Cluster Analysis method to category selected indicators and scores different categories corresponded of the sampling customers. And then through interviews with experts from different departments, the author establishes Fuzzy Judgment Matrix to calculate the index weight levels and completes the calculation of the customer value.Finally, the author presents customer segmentation matrix using customer current value and potential value as two variables. So the sampling customers are divided into nine categories and three groups. Based on nine types of customers, the paper proposes varied resource allocation and customer relationship developing strategy. Then, the paper makes comparisons between the three segmentation groups based on customer value and the company's existed classification hierarchy, to show the difference and validity of the former method.