Using big data to target brand success and build equity has become valuable. Review the results of this predictive analysis research and assess how the loyalty rules were derived from this model. Was the classification of the consumers predictive or reflective?
Introduction
The telecom sector is witnessing a massive increase in data, and by
analyzing this massive data, telecom operators can manage and retain
customers. It is also important for companies to be able to predict the
amount of income they may receive from their active customers. For this
purpose, they need models able to determine customer loyalty. The cost
associated with customer gain is usually higher than the cost associated
with maintaining it.
Prediction can be directed at customer loyalty to identify both
customers who have great loyalty to their preservation as well as
customers with intentions to change to the competitors. This capability
is necessary, especially for modern telecommunications operators.
Nowadays companies face more complexity and competition in their
business and need to develop innovative activities to capture and
improve customer satisfaction and retention.
Growing profitability is the goal of most companies, to reach this
goal, companies must provide an analysis of customer relationship
management (CRM) and provide appropriate marketing strategies.
Some studies provided a new model of transactions based on both the
services and customer satisfaction and showed that the price is not the
only measure affecting customer buying decisions, but it is also
important that both the customer and the company agree on product value
and good customer services. Therefore, organizations should not seek to
develop a product to satisfy their customers, but they must follow the
customer purchasing behavior and offer distinct products for each
segment. In other words, segmenting customers based on purchasing
behavior is necessary to develop successful marketing strategies, which
in turn cause the creation and maintenance of competitive advantage.
Current methods of customer value analysis which are based on past
customer behavior patterns or demographic variables are limited to
predict future customer behavior. So, better patterns were exch