TITLE:
Mining Profitability of Telecommunication Customers Using K-Means Clustering
AUTHORS:
Hasitha Indika Arumawadu, R. M. Kapila Tharanga Rathnayaka, S. K. Illangarathne
KEYWORDS:
K-Means Clustering, Data Mining, RFM Model, Customer Relationship Management
JOURNAL NAME:
Journal of Data Analysis and Information Processing,
Vol.3 No.3,
August
21,
2015
ABSTRACT: Data mining is the powerful technique, which can be widely used for discovering the customers’ behaviors as well as customer’s preferences. As a result, it has been widely used in top level companies for evaluating their Customer Relationship Management (CRM) system today. In this study, a new K-means clustering method proposed to evaluate the cluster customers’ profitability in telecommunication industry in Sri Lanka. Furthermore, RFM model mainly used as an input variable for K-means clustering and distortion curve used to identify optimal number of initial clusters. Based on the results, telecommunication customers’ profitability in Sri Lanka mainly categorized into three levels.