Network-Based Targeting

Abstract

This chapter focuses on two kinds of targeting in mobile industry: to target churning customers and to target potential customers. These two targeting strategies are very important goals in Customer Relationship Management (CRM). In the first part of the chapter, the author reviews churn prediction models and its applications. In the second part of the chapter, traditional innovation diffusion models are reviewed and agent-based models are explained in detail. Customers in telecom industry are usually connected by large and complex networks. To understand how network effects and consumer behaviors – such as churning and adopting – interplays with each other is of great significance. Therefore, detailed examples are given to network-based targeting analysis.