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Retail-based Customer Relationship Management, Customer Value Research

Posted on:2005-09-08Degree:MasterType:Thesis
Country:ChinaCandidate:Y WangFull Text:PDF
GTID:2206360125964454Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
As a new management model, Customer Relationship Management (CRM) can adjust the relationship between enterprises and customers. Through information technology, CRM integrates internal resources of enterprises and achieves the purpose of enterprises value increasing permanently at activities of building and developing and retaining customer relationship. Presently, the ratio of the application of CRM in other countries' companies is high. After China becoming a member of WTO, the foreigner companies in China have possessed successful experience, capital and efficial organization in CRM. The theory of customer relationship management locates the exploring step in our country. Applications of CRM are confined mostly to some industries, such as bank, insurance and telegraphy. There is no evidence of successfully applications on retailing customer relationship management. To analyse how to use CRM to promote Chinese Retailing is very important.The core of CRM is customer value. In the lifetime of finding, retaining and developing customer, the important thing is to analyze customer value. For effective CRM, it is essential to have information on the potential value of customers. Based on the interplay between potential value and realized value, managers can devise customer specific strategies. In this article we introduce a model for predicting the potential value of a current customer. Because the importance of customer value in CRM, how to calculate and value customer value becomes an important title for many researchers. This article hopes to get a good result by further analysis of customer value based on the former result.Presently, most research at home and abroad focus on using socio-demographic information and transaction information from the customer database to build customer potential value. But most of the models have not taken account of company's deed, and they discuss it generally and didn't analyze it quantitatively. In this paper, we build a customer potential model by using socio-demographic information and transaction information from the customer database and company's deed, and the model is better than the former models in predicting the potential value of a customer. The structure of this paper is as follows. First, we introduce the present condition about Chinese and Chengdu's retailing, and the necessity of customer value analysis. We focus on how to calculate customer's potential value. Then we use mulitivariate Probit model to build customer potential model and test the model's validity. Finally we present an application of this methodology in the A industry. We also discuss the market segmentation and market strategy based on customer present value and potential value. By the application in the Retailing Company, it shows that it is helpful for company's CRM using.
Keywords/Search Tags:CRM, Customer value, Probit model, Customer segmentation, Retailing
PDF Full Text Request
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