Research On The Promotion Strategy Of Customer Lifetime Value Based On Customer Purchase Behavior

In the 21st century, the retail industry witnesses ever growing development, catapulted by the rise of the Internet. As a crucial form of the retailing, TV shopping is also progressing rapidly in this century with increasingly standardized operations and has become an important branch of non-store sales. However, the era of customer traffic dividend is about to come to an end as the TV shopping industry continues to develop. A typical case in point was that as of December 2013, there were 145 TV shopping companies nationwide, Nanjing alone accommodating more than ten. Such a high-density development further intensifies the competition in the industry as there are fewer new customers to be developed, as a result of which resale from existing customers and increasing customer value have become a major challenge to the TV shopping companies now.The core of CRM lies in customer value management, enterprise must have an in-depth understanding of CLV securing effectively valuable customers. Limited resources must be leveraged on to right targets to sustain and improve customer value, thus gaining long-term profit for enterprises. This paper focuses on how to effectively leverage the theory of customer relationship management to manage customers based on segmentation and classification. As each group of customers will share unified statistical characteristics, we are able to conduct labeled customer management and design precise marketing plan for each segment in retention program, thereby enhancing customer value. Meantime, a detailed CRM case study of Enjoy Shopping Co.,Ltd, will be provided to analyze in-depth customer mining and precise marketing, which can serve as a reference for other companies in the TV shopping industry.