Research Of Mobile-Communications Enterprise Customer Segmentation Based On Customer Lifetime Value

In2008, reformation and restructuring of Chinese telecom industryinaugurated the tripod era of telecommunications. At the same time, becauseof the promotion of3G business, on the one hand, market competition isbecoming more and more intense, APRU value and profit space oftelecommunication is facing challenges. On the other hand, customer’sdemand of telecommunication becomes diversification and differentiation.Customers raised higher requirement of telecommunication business andservice quality. This made operators understand that the customer is the mostimportant asset to them. He who can master the customer’s demand trend,strengthen relations with customers, effectively excavate and managecustomer’s resources, he who can achieve a competitive market advantageand an impregnable position in the fierce competition. Customer-centricCustomer Relationship Management (Abbr. CRM) as an advanced businessmanagement concepts, strategies and methods naturally to become thecompetition direction of telecom operators in the market。Customer Lifetime Value (Abbr. CLV) is a core conception in CRM. It isan important branch of CRM study at home and abroad. The analysis ofcustomer lifetime value is the precondition that enterprise can correctlydifferentiate customers, efficiently distribute enterprise resources, and then wingreater returns for enterprise. And it is also the foundation and core that ensureenterprise to implement CRM strategies correctly and effectively.On the basis of predecessor’s study of customer lifetime value model, thispaper puts forward a customer lifetime value model which considerateword-of-mouth effect into the customer segmentation of telecommunicationsindustry. This provides telecom operators the scientific basis to choosecustomer retention strategy and resource allocation scheme.First of all, this paper introduces the related theories about customersegmentation and customer lifetime value, makes the customer lifetime value into customer current value, potential value and word-of-mouth value. Fromthe qualitative angle to analyses the three values’ influence factors, andestablished the customer word-of-mouth value evaluation index system. Then,proposed the concrete measurement method of the important parameters inthe model, using logistic regression models predict expected lifetime length ofcustomers, calculate customers’ current value and potential value, and usingAHP method to evaluate customer word-of-mouth value. After that, using theircurrent value, customer potential value and customer word-of-mouth value asdimensions to establish a three-dimensional customer segmentation modelwhich based on customer lifetime value. According to the differences ofcustomer lifetime value, classifies customers into eight categories, andintroduces the characteristics and the corresponding management strategiesof these eight kinds of customers. Finally, making the empirical research of aChina Mobile Communication Corporation in some city, the empirical resultsshow that the model and the method is effective and can effectively identifydifferent customer groups, and owns rather stronger operability and testability,which can guide telecom operators in the “customer oriented” marketingconcept to make marketing and service decisions, so that the enterpriseresources can be distributed reasonably and to make profit maximization.