Data warehouse based analysis on CDR to retain and acquire customers by targeted marketing

Retaining an existing customer than acquiring a new one is less expensive in terms of marketing cost, bonus, and incentives offered etc. Telecommunication industry across the globe is stiff competitive environment where market is almost saturated and main focus of customer service becomes retaining existing customers and snatching others' customers to increase market share as well as profit. At the same time telecom industry facing the problem of churn or attrition more than anything especially for prepaid customers as the customers could switch the service providers easily. Telecom operators generate huge volume of call detail records every day for every call, SMS or internet access made by its customers. Telecom operators use these huge operational data for business processing to understand customer behavior. In this paper a mechanism is developed to store CDR data in a suitable Data Warehouse (DW) schema and analytically process these using OLAP tools to understand the prepaid customers usage, spending and propensity to marketing offers. Depending on the usage pattern proper segmentation of the customers has been done and they have been categorized for different types of targeted marketing offers and benefits to retain as well as acquire new customers.