The Study Of Customer Segmentation In Express Service Industry Based On Data Mining

Over the past decades, the Chinese express service industry maintains a high rateof growth and its market size is growing drastically. All enterprises in the market arefacing the intense competition of getting new customers while retaining the oldcustomers, especially keeping those major customers, and it is of vital importance tothe enterprise’s survival and development.Customer segmentation, as one of the core concept of customer relationshipmanagement, refers to the classification of customers based on the differentdemographic characteristics, demand characteristics, purchasing behavior, buyinghabits and credit status of customers. The result of customer segmentation can be usedto help companies develop targeted products, services and marketing. Customerbehavior segmentation, which reflects customers’ demand excellently, is one of thebest starting point for market segmentation.Customer behavior segmentation based on data mining is the classification ofcustomers by identifying customer behavior characteristics according to the hugecustomer behavior database. Customer behavior segmentation based on data miningprovide the business with a easier way to understand the customers, make targetedmarketing and carry out customized services. Customer behavior segmentation basedon data mining, which is more accurate than traditional customer behaviorsegmentation and can achieve a quantitative description of customer behavior, hasbeen widely used in credit cards, securities, telecommunications, retail and other fields.This paper introduce the data mining technology into the customer segmentation inexpress service industry and build a model of customer segmentation in expressservice industry. The use of the method is discussed and an example is given. Thestructure of the paper is as follows:1. Chapter1-2describes the background information and pioneer works of thispaper. Some basic definitions are given, including customer segmentation theory anddata mining technology.2. Chapter3introduces express service industry and analyzes the status ofcustomer segmentation in express service industry. 3. Chapter4focuses on the building of customer segmentation model based ondata mining.4. Chapter5verifies the model.This study enriched the customer segmentation theory, and provides a theoreticalbasis and practical guidance for customer management and marketing services inexpress service industry.