Data Mining and Machine Learning Applications

8Modified Cross-Sell Model for Telecom Service Providers Using Data Mining Techniques

K. Ramya Laxmi¹*, Sumit Srivastava², K. Madhuravani¹, S. Pallavi¹ and Omprakash Dewangan³

¹Department of CSE, Sreyas Institute of Engineering and Technology, Nagole, Hyderabad, India

²Dept. of Computer Science & Engineering Birla Institute of Technology, Mesra, Ranchi, India

³CSE, Kalinga University, Naya Raipur, India

Abstract

Intensified competition and frequent shifting of the customer base for fixed-line telecom service providers, in recent years, has increased the necessity for better targeting and segmenting prospects and customers for cross-selling and up-sell of products and services. Telecom service providers now know and understand that old-fashioned marketing is no longer the option because of the abysmally low hit rates in the targeting of customers and the consequently low Return on Investment. Decision-makers in most fixed-line telecom operators are now of the view that better and accurate targeting of customers is only possible with accurate predictive analytics and data mining. A logistic regression algorithm has been used in this case study to identify those customers with the highest propensity to buy new products and services.

Keywords: Cross-sell model, data mining techniques, logistic regression algorithm

8.1 Introduction

A gold mine of the fixed-line telecom companies is their customer base. In the region across Asia Pacific, the telecom as a sector has witnessed ...