Case study on cluster analysis of the telecom customers based on consumers' behavior

Customer segmentation is one of important issue in the customer relationship management. It's the means to cluster customer reasonably and effectively in improving economic efficiency of enterprises. This paper proposes a three dimensional model of customer segmentation based on the perspective of customer behavior and clusters the customer group with Kohonen method. Firstly, customer segmentation model was built according to business experience and verified the rationality of it by factor analysis. Chose the suitable variables to describe these three dimensions; secondly, use the Kohonen clustering algorithm to generate customer types. The clustering results were arranged to the eight quadrants. Describe the characteristics of each cluster groups; Thirdly, Marketing strategy was put forward by understanding the customer characteristics. Finally, a case study of the consumption data of a telecom enterprise in the region of Liaoning is given.