The Research Of Customer Value Management For Cosmetics Retailers

Recently, competition in cosmetics retail industry is increasingly intensified. How can cosmetics retailers create value to cater their customers? How can cosmetics retailers attract more new customers and retain all current customers? Those are the questions which managers of cosmetics retailers can't avoid. This paper take Sephora as the main object of study, analyze its customer value, and segment customer base on customer value. The paper could have some reference value to cosmetics retailers.This paper introduces the background of the topic first, and then elaborates the necessity of customer value management for cosmetics retailers. After review foreign and domestic theories about customer value, the paper use RFM method to analysis Sephora's customer behavior, such as purchasing frequency, amount, and etc. Besides that, the paper use DWYER method to calculate customer lifetime value. According to customer lifetime value, the paper proposes how to segment different customer base on customer value, and how to design marketing strategy to select and maintain customer. Finally, the paper generalizes the process of customer value management and gives suggestions to cosmetics retailers: cosmetics retailers should service different group customer base on the customer value, choose different marketing strategy to improve customers'loyalty and retention rate. Thereby creating the core competence of cosmetics retailers, and ultimately maximizing the profit.