Customer behavioral segmentation in utilities industry

: the Galp Energia case

Abstract

Two of the greatest marketing techniques in order to a company/brand to find which are its best customers among the all existing ones and posteriorly to prepare an efficient marketing campaign are the Lifetime Value and the Customer Segmentation. This dissertation aims to help Galp Energia, one of the most important energy companies in Portugal, to deal with the recent change in the utilities market from regulated to liberalized by creating a tool that segments behaviorally the company’s customer data base taking in the consideration the Lifetime Value of each client. To do so, a model of Lifetime Value based on three different figures – Current Value, Potential Value, and Customer Loyalty – was adapted and applied and a three-dimensional Customer Behavioural Segmentation process (with eight segments) was posteriorly designed. It is expressed the importance of coordinating different types of Segmentation, instead of basing the total process in one type only. Indeed, analysis and recommendations are also done to the all eight segments.

Date of Award	17 Apr 2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rute Xavier (Supervisor)