Dynamic Customer Relationship Management Of Small And Medium-sized Enterprises Based On Hidden Markov Model

Small and medium enterprises are the main driving forces of economic growth and the major pioneers of technology innovation in China. Their healthy growth is of great significance for the stable development of the national economy. According to the characteristics of small and medium enterprises, developing customer relationship management is an important measure to strengthen the vitality of small and medium enterprises.This paper, it based on customer relationship management of small and medium enterprises from the perspective of customer's value, first analyzes the situation and problems of customer relationship management in small and medium enterprises. Additionally, this paper introduces Hidden Markov Model to construct dynamic customer relationship management model adapted to small and medium enterprise according to their features. Last but not least, to verify the above mentioned model, the paper chooses M company as a case for concrete research and analyzes the unsatisfactory effect of customer relationship management. Corresponding state measurement of vector is chosen based on the concrete condition of this enterprise. MATLAB program is applied to calculate the purchase probability of customer and the order of customer status. The hidden state is also confirmed. The result is that the model of random, common and dependant observation state are more appropriate. The M company should promote common customers to dependant transition probability through the calculation of transition probability of these three states. If the relationship between customer and company is close, so will the purchasing intention by calculating the purchasing probability of customers on certain status. The four state order of these representative hidden customer relationships are lingering state, development state, stable state and crisis state. In the end, corresponding marketing measurement is proposed concerning the above mentioned state order.This paper provides a quantitative research method of customer relationship management for small and medium enterprise. It helps the small and medium enterprises in recognizing customer relationship management. It is of great practical significance to guide small and medium enterprises to develop, maintain and promote customer relationship and then extend the management life of small and medium enterprises to some degree.