Segmentation Applications in Telecommunications - Data Mining Techniques in CRM: Inside Customer Segmentation - page 317

Table 7.14 The age profile of each cluster.

Clusters

Cluster Cluster Cluster Cluster Cluster Total
1 2 3 4 5

Age groups 18-24 (%) 0 1 12 1 1 3

25-34 (%) 8 22 50 35 29 28

35-44 (%) 13 34 17 38 33 27

45-54 (%) 23 22 19 18 24 22

55-64 (%) 30 14 1 5 8 12

65 + (%) 26 7 1 3 5 8

Total (%) 100 100 100 100 100 100

bought the contracts for their children. Remember that the scope was to build
segments based on usage and not on demographic information. Cluster assignment
is based on usage patterns. Therefore, from the behavioral segmentation point of
view, adults who ''use'' their phone in an ''adolescent'' way should be assigned to
the relevant segment.
In order to enrich the insight into each cluster, the marketers of the organi-
zation decided to also investigate the qualitative characteristics. Therefore, they
extracted a random sample from each cluster and conducted a market research
survey and focus group sessions in which they examined the needs and wants and
the factors that have an effect on the level of satisfaction (satisfaction drivers). The
short phone interviews of the selected sample were carried out by the call center
agents of the organization.
The profiling outcomes are summarized in the descriptions that follow. They
present the differentiating usage characteristics, a short demographic profile, and
the key market research findings on each cluster. They also present the main
points of the specialized marketing approach decided for each segment. A series
of summarizing charts, graphically illustrating the percentage deviations of each
cluster from the overall population, are also presented as a supplement of the
behavioral profile.

Segment 1: Oldies - Basic Users (Figure 7.8)

Behavioral Profile

• Lowest utilization of all services.
• Smallest outgoing and incoming communities.
• Phones used for a few days in a month.