Research On Customer Segmentation And Marketing Strategy Of The Y Mall Based On RFM Model

As the rapidly development of national economy and vigorously propelling of reform and opening up policy, Chinese retail industry grows vigorously, while the situation that supermarket chains, convenience stores, specialty stores and department stores dominate the market was formed. Moreover, in recent years, the first three formats of stores grow rapidly. As a result, economic benefits of department stores decline somehow. However, judging from the overall analysis of market demand, department stores are irreplaceable with broad space for development.Store Y is department store targets in upscale customer base and locates in Dalian. The store tries to attract customers via their own unique products and considerate service, by which profits increase stably ever since. Unfortunately, the traditional mean of customer segmentation of store Y works unsatisfactorily in recent years due to the increased competition and the maturity of market. Thus the management of store Y paid great efforts on finding ways to enhance customer value and scientific customer segmentation and efficient marketing strategies are therefore needed urgently.In this paper, starting from the actual customer segmentation problem of mall Y, deficiencies of former customer segmentation is analyzed while new method for customer segmentation is proposed. After randomly selecting customer transactions information of 400 customers, customer segmentation model RFM model and theory of customers'life value were used to conduct scientific segmentation. Afterwards, transactions information of segmented customers was analyzed deeply while basic information was concluded. At last, corresponding marketing strategies were developed to achieve the goal of customer retention and improving customer value.