ZSM Customer Relationship Management Based On The Customer Classification Theory

Due to the deepening of China’s energy reform and energy substitution effect, the operating strategies of oligopoly enterprises have been shifted, which is also owing to the changes in Access Policy and the impacts of alien smuggling oil. The refined oil market has shown signs of product homogeneity, resource diversification and price transparency, which has led to an increasingly competitive market. The basic demand for the customers has shifted from the "three guarantees"-quality, quantity, security into service differentiation based on the "three guarantees".ZSM, established by the joint investment of Sinopec, ExxonMobil and Saudi Armco, is the first provincial joint venture for refined oil marketing in China. ZSM is the main supplier for refined oil products in Fujian Province. The main distributions consist of gasoline, diesel, lubricants and convenience stores. At present, refined oil market of Fujian is basically composed by Sinopec, CHEMCHINA and PETROCHINA; CNOOC and other private enterprises are complementary of competitive landscape. As the growth of China’s economy is slowing down, the market potential growth of the resources and energy has been very limited, however, when three main enterprises have increasingly put oil resources into market and access of refined oil business has been gradually liberalized, multi-faceted competitive trend to the resource, price, service and marketing strategy is now irreversible. In order to gain a firm foothold in the ever-increasingly competitive market and quickly adapt to market changes and customer demands, enterprises should only analyze customer value, classify customer demands, create new marketing ideas and then implement customer relation management. Classify customers, at the same time carry out targeted marketing and services to better meet different demands of customers, which builds barriers to refined oil enterprises.Firstly this paper has brief description and summary of research at home and abroad for customer relationship management. There are also analysis and research about CRM theory and its related theories, as well as customer classification theory based on customer value. Secondly it integrates customer value, potential value and customer loyalty to construct a model of customer segmentation based on customer lifetime value, and describes customer classification processes and methods in detail by combining customer characteristics. The paper also makes an empirical research among customers in Longyan (the mountains) on customer classification model based on customer value. It calculates index weight using analytical hierarchy process; customers are classified as high-value customers, the general value customers and low-value customers through K-means clustering method and the ABC classification. Finally, for the situation and existing problems of ZSM customer relationship management, creating holistic view of customer information analysis is proposed, as well as functional modules of the ZSM customer relationship management system (CRM) based on this view.The innovation is to establish a customer value evaluation system based on customer lifetime value and customer classification model by combining the customer current value, potential value, customer loyalty and the characteristics of customer and competitive market, which have been verified by examples in this paper. At the same time the solution for customer management system of ZSM straight distribution is proposed. Establishing holistic view of customer information analysis through customer classification can help ZSM effectively mine high-profit customers and contribute the limited resources accordingly, which has not only further strengthened the core competitiveness, but also enhanced operational efficiency, thus the company gets more return on input-output.