Smartphone’s Customer Segmentation and Targeting

Abstract

In recent years, mobile service usage increase rapidly following the emerging use of smartphone technology by the mobile users. The increase use of mobile service poses challenge for actors in mobile ecosystem to constantly meet the dynamic change of needs and requirement of mobile users. Through market segmentation, actors such as network operator, handset manufacturer, and application provider are able to distinguish behavior usage or preferences on mobile services for each market segment and use this information to design or offer specific product that meet the behavior or preferences of the user in each market segment. This paper explores the use of market segmentation on the perspective of actors in mobile ecosystem which are network operator, handset manufacturer and application provider. Furthermore, this paper also explores the interaction that may exist between each actor by analyzing the relation between the resulted segments of each perspective. Our findings show that the resulted market segment can be identified based on their level of voice, SMS and data usage and also based on their application usage behavior. Related to interaction among actor, by correlating the resulted segment of each perspective, we find that handset manufacturer can easily cooperate with both network operator and application provider in designing or offering product and services to each market segment, while the cooperation between network operator and application provider may be quite complex. We also note that incorporating demographic and psychographic for profiling the market segment based on behavioral usage provide additional insight for each actor to perceive their target users and respectively type of marketing strategy and product usage to be offered.