Segmentation and new product promotion
Mobile operators are trying to increase their data ARPUs by driving adoption of data services. Marketing promotions of data services to the install base are now part and parcel of driving data ARPU. The standard process today starts with consumer segmentation based on past experience. So far the traditional miners used customer segmentations based on demographics, purchase history and similar variables. While this has been a promising approach, it does not take into account that people learn about products through their friends. Word of mouth and one's circle of friends influcence the purchase decision significantly. SGSE can be used to incorporate interpersonal relationship information into the segmentation process.
SGSE can help these marketing promotions in 2 ways.
- increase the effectiveness of segmentation by highlighting friends of high data product usage customers.
- increase the pool of marketing targets that would not have been included in traditional segmentation.
A published study has shown how using network scores can improve conversion rates by 340% (link here)