A CRM-based pricing model for m-commerce services

Mobile network operators (MNOs) and service providers need flexible pricing mechanisms in order to fulfill next generation business models. Heavy competition in the wireless market place increases the importance of designing the most effective business models and developing long-term relationships with customers. Customer Relationship Management (CRM) is an effective tool in order to pursue long-term relationship with profitable customers. In this article, we focus on proposing a simple and robust pricing model for mobile commerce services based on CRM approach. This mechanism enables operators to satisfy the needs of their existing customers and to achieve the maximum revenue and utilization rate on their current customer portfolio as well. Our aim in this research is to come up with a unit price for each mobile service/product class by taking the issues of social welfare maximization into consideration. The CRM implementation in the proposed model further allows MNO to better understand its customers and hence to direct its marketing plans to a specific target market. Analytical and simulation results demonstrate the implementation and the effectiveness of the suggested approach.