Optimum Models Of Customer Retention Based On The Customer Segmentation

With the further development of reform and opening up and with the globalization of world economy, domestic manufacturing is facing bigger and bigger external pressure, domestic enterprises have to change and reform deeply. Changing from developing customers traditionally to retaining lost customers is becoming a feasible marketing activity direction of manufacturing. Marketers of S company may have enough information to construct a model which can forecast potential lost customers, but they still don’t have enough clues to distinguish the potential customers who will accept the activities and stay with them. Neither can they estimate the expected returns from these customers. With the rapid performance growth of S company, how to forecast potential customers, retain the potential lost customers through marketing activities and estimate maximum profit is an urgent subject for S company.First, this article embarks from customer churn and general method of retention management, combines the truth of customer churn and retention management model. Authors of this article carried out analysis and study about retention management of S company.we believe that only the model based on theory is feasible, especially the optimal model of retention management. We analyses the limitations of the current customer segmentation approach. We must think about retention probability and expected returns from the perspective of target customers based on a new customer segmentation approach with customer profitability, profit growth rate to improve the CRM.Then, we research the optimize models of customer retention based on the new customer segmentation. The purpose of the optimize models of customer retention is to acquire the ultimate customer profitability. Further, the paper proposes a customer differential management strategy and formulates a differential management template of the customer relationship management to improve the relationship management.In the end, our experimental results showed that the optimum input retention management model of customer retention based on the customer segmentation acquire the ultimate customer profitability with the highest accuracy. And it also shows the customer profitability has down tread when the customer retention cost is over budget, we call it as "U" curves.This article not only has practical significance for customer churn management level of S company, but also has reference value for other industries, such as electrical communication and stock.