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A New 3D Value Model for Customer Segmentation: Complex Network Approach

  • Mohammad SaeediEmail author
  • Amir Albadvi
Chapter
Part of the Lecture Notes in Social Networks book series (LNSN)

Abstract

Intensive rivalry in the business environment has led organizations to better and more accurate recognition of their customers. Hence, assessment of customer’s value during his or her lifetime (CLV) is an effective solution to identify and segment customers. Network potential, one of the most important components of CLV, can cause more income and affect the customers’ referrals and network relationships. This research has a new attitude to customer value, and that is adding two other dimensions “influential value” and “structural value” to CLV—which is gained from future monetary incomes. In order to analyze the influence and the role of a customer in the network structure, complex network features have been used. Afterward, the customers are clustered by using k-means algorithm. In the end, each cluster is analyzed, and some marketing solutions are suggested. The proposed model is implemented on a telecommunication dataset as an application. Results show that considering customers’ network aspects has an important role in the evaluation of customers’ value.

Keywords

Segmentation Customer value Complex network Customer lifetime value (CLV) Influential value Structural value 

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Tarbiat Modares UniversityTehranIran

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