Applying user segmentation and estimating user value in techno-economic modeling

Abstract

In this article we present a holistic techno-economic framework to analyze a service delivery ecosystem and its revenue streams. In particular, we address issues related to user segmentation and pricing. The main contribution of the paper is to show that it is possible to construct and utilize analytical models to assess how users in different customer segments behave both when selecting services and when using the services. The results of the analysis provide consistent basis for service providers to design and optimize their products.