Research on Index System of Dynamic Customer Segmentation Based on the Case Study of China Telecom

Abstract

Because of the influence of psychosocial and environmental factors, customer behavior is sometimes uncertain and inconsistent. However, most of the existing customer segmentation approaches are for certainty segmentation, which cannot objectively describe customer’s random and uncertain behavior. Therefore, this article proposes an index system of dynamic customer segmentation based on customer lifetime value, and reveals that more comprehensive comparison and analysis can be conducted on target customers along four dimensions, namely, service application strength, service core value, service substitutability, and service core value extension. Through China Telecom's database mining, the specific evaluation indices for the telecom industry are introduced, achieving dynamic customer segmentation and increasing the objectivity of this index system in describing customer behavior.