Application Research Based On Improved RFM Model

The face of increasingly fierce market competition, the seller is still oriented to the business enterprise, whether the product has many good quality, more cheaply, companies are very difficult to win in the competition. In today's market economy, enterprises should be consumer-oriented, in a sense, do not understand the target market of consumer behavior and psychology, they did not work properly in the development of marketing strategies, and in today's market, for the lack of a marketing company, you want to achieve business success is easier said than done. Therefore, the establishment of customer value model is a very necessary work, because the basis of correct analysis of customer value analysis can be better to analyze customer behavior and psychology. Enterprise management to identify the problems in the past and guide the future management business; and enterprise marketing strategy that should be taken to prevent the loss of customers and play an important role.In this paper, the mature customer value model RFM model, and analyzes the use of the model in the retail business, some existing problems and the use of some of the inconveniences. In a large-scale retail enterprises and domestic discussions, combined with the enterprise's own situation with reference to the entrepreneur's request, an improved model RFJ customer value model. Retail businesses can expect more convenient and more rational use of customer value model in the business.Today, more and more attention to customers in the vast majority of companies are more or less understanding of customer value models, and even some companies have used the model of the enterprise. However, these companies use this model, there will always encounter some problems or inconvenience this paper, the model in the retail business made two improvements.Improve consumer value, from RFM model consumption amount from the date of birth was given the title of the most important indicator, because companies still believe that consumer can bring profit to the enterprise. Companies that their profits come first of course understandable, but many scholars put forward at this stage, consumption rates and more customers do not necessarily give businesses more profitable. In view of this the above problems, this paper points to customers instead of spending the amount of consumption.Recent improvements to store the time, RFM models have taken into account to store the recent time, the impact on customer value, but it ignores the interaction between customers and business factors that are customers of the company to buy the interval, that customers continue to buy capacity. So this paper to the duration of time instead of their store recently, the proposed duration of the calculation of R, asThrough these improvements, the formation of a new calculation model of customer value model RFJ.In the empirical analysis, this paper two and a half of a large-scale retail enterprises members of sales data to RFJ model, perform customer value analysis. Includes the following steps:1) delineation of six months, the entire two years of data are divided into five time periods, and in each time period were calculated for each customer's customer value.2) the time period for each customer value as a dimension for each customer, so that each customer is a five-dimensional vector, with the migration of the customer the nature of cluster formation of the categories.This analysis method has the following advantages:1) customer over time, shift from one value to another level of hierarchy of values, then we can identify the type of customers the enterprise is more worth the time and effort;2) value for each class of customers to develop appropriate marketing strategy;3) the value from the customers at all stages of change can be found in the enterprise business problems.Finally, the clustering results of the analysis of each type of customer, so as to optimize business operations to provide some suggestions. And the prospect of customer value models and the prospects for the retail enterprise applications.