110Mining Your Own Business in Telecoms Using DB2 Intelligent Miner for Data
6.1 The business issue
Customer value has been defined in different ways by marketing departments in
telecoms companies. True value of customers is determined in order to support
customer acquisition and cross-selling. The true value includes revenue and
profitability as well as an estimated life time value and credit risk. The most
common way to measure customer value is using customer revenue or customer
profitability.
These measures are originated from the finance department and often generates
an incomplete evaluation of the true customer value in a marketing perspective,
because the same revenue or profitability could be generated by various
combinations of ser ...
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