A novel customer scoring model to encourage the use of mobile value added services

Following deregulation and liberalization of the mobile telecommunications sector, the mobile telecommunication market is becoming increasingly saturated. Mobile operators are confronted with a sluggish user growth rate and a fall in the average revenue per user (ARPU). Mobile value-added services (VAS) are expected to form mobile operators’ strategy to compensate dwindling revenues. However, not only is it difficult to analyze which types of customers are willing to use VAS, but it is equally difficult to understand the diversified customer preferences on VAS. This study proposes an integrated scoring model that includes multiple classification models. It analyzes and distinguishes the potential prospects of VAS. We applied our model to the case of a mobile operator in Korea to validate its usefulness. We explored the prospects for melody bells for that company. We found that our proposed scoring model produces better results than other comparative models.