A study for control of client value using cluster analysis

This paper proposes a new policy for consolidating a company's profits by segregating the clients using the contents service and allocating the media server's resources selectively by clusters using the cluster analysis method of CRM, which is mainly applied to marketing. In this case, CRM refers to the strategy of consolidating a company's profits by efficiently managing the clients, providing them with a more effective, personalized service, and managing the resources more effectively.For the realization of a new service policy, this paper analyzes the level of contribution vis-à-vis the clients' service pattern (total number of visits to the homepage, service type, service usage period, total payment, average service period, service charge per homepage visit) and profits through the cluster analysis of clients' data applying the TwoStep Cluster Method. Clients were grouped into four clusters according to the contribution level in terms of profits. Likewise, the CRFS (Client Request Filtering System) was suggested to allocate media server resources per cluster. CRFS issues approval within the resource limit of the cluster where the client belongs. In addition, to evaluate the efficiency of CRFS within the Client/Server environment, the number of admitted streams was evaluated for the comparison with other algorithms. A higher renewal rate was shown when applying CRFS through the evaluation of the client's renewal rate.