There are number of frustrating factors for marketers who work with prepaid customers in telecommunications. This white paper summarizes the pros and cons of common segmentation strategies in prepaid markets. We all know the common marketing maxim that “one must know one’s customers very well”. This is easier said than done in telecommunications – for the obvious reason that when the number of customers goes beyond several hundred, marketers are forced to deal with imperfect summaries of the real world in the form of charts, data tables and averages. There are many questions marketers ask about segmentation: Do I really need to segment my customer base? How many segments?

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