A Dynamic Reward Model Using SDP-Based Mechanism
Recently due to the launching of 4G services and evolving in mobile technology, it is rapidly changing and strictly competitive in telecom market. Therefore, telecom operators develop a great many of reward campaigns to encourage customers consume more data usage and to raise customer loyalty. However, reward returned to customers varies only if data usage changes without other charging factors. Customers who consume the same data usage obtain equal returned reward. Furthermore, the reward for customers has no differentiation or customer segmentation, such as a heavy data usage customer or a light data usage one. In this paper, we propose a dynamic reward model using Smart Data Pricing (SDP) based mechanism depending on customers' not only real-time information but also different historical usage patterns for each charging factor. Compared to a typical reward model which considers only data usage, it can better customers' intention in consuming data usage and increase the revenue and customer satisfaction for telecom operators. As a result, our approach can encourage customers to stay with existing telecom operators to get more reward and reduce the churn rate. It can not only achieve goals of target selling, up-selling and real-time selling but also ease network congestion effectively.