Research, Customer Segmentation Method Based On Clv And Customer Loyalty

With the deepening studying on customer's relation, the scholars find that the customer retention has surprising influence on the profit ability of a company. They reported that the net present value increase in profit that results from a 5% increase in customer retention varies between 25 and 95% over 14 industries. It has been argued that customer retention is the most vital goal of company success. However, the goal of customer retention is not striving for zero defection. Instead, firms should focus on managing their retention rate and optimizing customer equity. In order to practice the strategy of customer retention successfully, a company must first segment customer properly.However, the traditional customer segmentations were based on customers' behavior characteristics or customers' statistical characteristics. Though these segmentations can predict customers' purchase behavior in the future, they can't offer the scientific basis to customer retention and resource optimization. For this reason, the paper has proposed the new customer segmentation based on CLV and customer loyalty. Having finished some researching work as follow:1. On the basis of studying customer lifetime value, divides customer lifetime value (CLV) into customer current value (CCV) and customer future value (CFV), and gets the calculating method of these two variables.2. On the basis of studying the customer loyalty, proposes a model of measuring customer loyalty.3. Use customer current value (CCV), customer future value (CFV) and the level of customer loyalty (CL) as dimensionality to design the new three-dimensional customer segmentation.This segmentation not only can distinguish the customer value dynamically, but also can compare the quality of customer relation. So it is the scientific basis for customer retention and resource optimization.