Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets
Understanding marketing channel performance is a crucial and complex task for the mobile financial technology segment of the mobile industry in emerging markets. However, poor techniques and capabilities for channel optimization of the mobile money users across available channels by the service prov...
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LLC "CPC "Business Perspectives"
2020-07-01
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| Series: | Innovative Marketing |
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| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13828/IM_2020_03_Dairo.pdf |
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| author | Adeolu Dairo Krisztián Szűcs |
| author_facet | Adeolu Dairo Krisztián Szűcs |
| author_sort | Adeolu Dairo |
| collection | DOAJ |
| description | Understanding marketing channel performance is a crucial and complex task for the mobile financial technology segment of the mobile industry in emerging markets. However, poor techniques and capabilities for channel optimization of the mobile money users across available channels by the service providers often undermine the performance of these channels. The research aims to develop a target selection and campaign optimization framework for mobile money customers along two channels of transactions. It is complemented by mapping the appropriate campaign techniques across digital and non-digital channels of mobile money transactions. The key analytical method is the combination of fuzzy c-means clustering and RFM algorithm for the target selection development through the usage logs of customers (n = 300) of a mobile service provider. The results indicated that fuzzy c-means clustering and RFM algorithm are efficient for target selection. Also, the mapping of clusters with the appropriate channel of transactions revealed that mobile money users’ transactions could be optimized along the digital channel. The analytic model’s output enables appropriate cross-selling and up-selling campaigns that optimize the service provider revenue from existing and new mobile money users within the customer base. The channel evaluation revealed mobile application channels to be a promising and future channel for mobile money transactions as smartphone penetration continues to grow in emerging mobile markets. That is a positive sign of the digital channel’s future potential for mobile money transactions in developing markets.
Acknowledgment The authors wish to thank the University of Pecs under the Higher Education Institution Excellence Program of the Ministry of Innovation and Technology in Hungary within the framework of the 4th Thematic Program – “Enhancing the Role of Domestic Companies in the Re-industrialization of Hungary.” |
| format | Article |
| id | doaj-art-a1afaa2bc7ed40bfb71401086284a0cc |
| institution | OA Journals |
| issn | 1814-2427 1816-6326 |
| language | English |
| publishDate | 2020-07-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Innovative Marketing |
| spelling | doaj-art-a1afaa2bc7ed40bfb71401086284a0cc2025-08-20T01:51:27ZengLLC "CPC "Business Perspectives"Innovative Marketing1814-24271816-63262020-07-01163374710.21511/im.16(3).2020.0413828Analytical approach to digital channel performance optimization of mobile money transactions in emerging marketsAdeolu Dairo0https://orcid.org/0000-0003-4350-1115Krisztián Szűcs1Ph.D. Candidate, Faculty of Business and Economics, University of PecsPh.D., Faculty of Business and Economics, University of PecsUnderstanding marketing channel performance is a crucial and complex task for the mobile financial technology segment of the mobile industry in emerging markets. However, poor techniques and capabilities for channel optimization of the mobile money users across available channels by the service providers often undermine the performance of these channels. The research aims to develop a target selection and campaign optimization framework for mobile money customers along two channels of transactions. It is complemented by mapping the appropriate campaign techniques across digital and non-digital channels of mobile money transactions. The key analytical method is the combination of fuzzy c-means clustering and RFM algorithm for the target selection development through the usage logs of customers (n = 300) of a mobile service provider. The results indicated that fuzzy c-means clustering and RFM algorithm are efficient for target selection. Also, the mapping of clusters with the appropriate channel of transactions revealed that mobile money users’ transactions could be optimized along the digital channel. The analytic model’s output enables appropriate cross-selling and up-selling campaigns that optimize the service provider revenue from existing and new mobile money users within the customer base. The channel evaluation revealed mobile application channels to be a promising and future channel for mobile money transactions as smartphone penetration continues to grow in emerging mobile markets. That is a positive sign of the digital channel’s future potential for mobile money transactions in developing markets. Acknowledgment The authors wish to thank the University of Pecs under the Higher Education Institution Excellence Program of the Ministry of Innovation and Technology in Hungary within the framework of the 4th Thematic Program – “Enhancing the Role of Domestic Companies in the Re-industrialization of Hungary.”https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13828/IM_2020_03_Dairo.pdfclusteringfuzzy c-meansmarketing analyticsmobile applicationmobile moneytransaction channel |
| spellingShingle | Adeolu Dairo Krisztián Szűcs Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets Innovative Marketing clustering fuzzy c-means marketing analytics mobile application mobile money transaction channel |
| title | Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| title_full | Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| title_fullStr | Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| title_full_unstemmed | Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| title_short | Analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| title_sort | analytical approach to digital channel performance optimization of mobile money transactions in emerging markets |
| topic | clustering fuzzy c-means marketing analytics mobile application mobile money transaction channel |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13828/IM_2020_03_Dairo.pdf |
| work_keys_str_mv | AT adeoludairo analyticalapproachtodigitalchannelperformanceoptimizationofmobilemoneytransactionsinemergingmarkets AT krisztianszucs analyticalapproachtodigitalchannelperformanceoptimizationofmobilemoneytransactionsinemergingmarkets |