Predicting customers´ future demand using data mining analysis: A case study of wireless communication customer

Due to high competition in today´s business and the need for satisfactory communication with customers, companies understand the inevitable necessity to focus not only on preventing customer churn but also on predicting their needs and providing the best services for them. The purpose of this article is to predict future services needed by wireless users, with data mining techniques. For this purpose, the database of customers of an ISP in Shiraz, which logs the customer usage of wireless internet connections, is utilized. Since internet service has three main factors to define (Time, Speed, Traffics) we predict each separately. First, future service demand is predicted by implementing a simple Recency, Frequency, Monetary (RFM) as a basic model. Other factors such as duration from first use, slope of customer´s usage curve, percentage of activation, Bytes In, Bytes Out and the number of retries to establish a connection and also customer lifetime value are considered and added to RFM model. Then each one of R, F, M criteria is alternately omitted and the result is evaluated. Assessment is done through analysis node which determines the accuracy of evaluated data among partitioned data. The result shows that CART and C5.0 are the best algorithms to predict future services in this case. As for the features, depending upon output of each features, duration and transfer Bytes are the most important after RFM. An ISP may use the model discussed in this article to meet customers´ demands and ensure their loyalty and satisfaction.