Research On Customer Classification Based On Customer Value

Nowadays, the competition on contesting customer resources is becoming more furious. It is vital for the company to make a series of instruments to explore and maintain its customers. First, the company should evaluate its customers correctly, thus distinguishes the high-beneficial customers, low-beneficial customers, less-beneficial customers and the none-beneficial customers. Second, according to the above classifications, the company can exert proper efforts to different customers so as to benefit more during the competition with its rivals.The purpose of this paper is to build a reasonable model that can measure customers' values and judge their differences exactly so as to classify the customers correctly. In this way, the company can make full use of its resources.On the basis of multiple document-reading and by analyzing the current theories, the paper concludes the model for measuring shares of customers. Through the brand-choosing model, the paper first calculate the possibility of customers' next choice on brands, then predict customers' future choice on brands. Finally, the paper makes out the shares of customers by combining the customers' purchasing amount and purchasing frequency. Customers are classified according to their shares and their total consuming amount.At last, the paper expounds the necessity of this study. Besides the breaking points, there are also some limitations existing in the paper. The researcher hopes that the paper is meaningful and will be used for reference for future research.