2004ForecastingOpen access

The Research about Customer Segmentation Method Based on Customer Value

Jingjing Li

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Abstract

Exact customer segmentation is the base of effectively implementation customer relationship management. Customer segmentation based on customer value is a method of segmenting customer through analyzing customer value. In this paper, we design a new index system about customer value evaluation combining the theory of customer lifetime cycle. This index system evaluates customer value from two ways: lifetime stage of customer and development potential of customer. Then we select neural networks as evaluate method. At the end of this paper, we segment customer according to evaluate result and analyze the marketing strategy of each customer sort.

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What this paper is about

Exact customer segmentation is the base of effectively implementation customer relationship management. Customer segmentation based on customer value is a method of segmenting customer through analyzing customer value. In this paper, we design a new index system about customer value evaluation combining the theory of customer lifetime cycle. This index system evaluates customer value from two ways: lifetime stage of customer and development potential of customer. Then we select neural networks as evaluate method. At the end of this paper, we segment customer according to evaluate result and analyze the marketing strategy of each customer sort.

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Available abstract

Exact customer segmentation is the base of effectively implementation customer relationship management. Customer segmentation based on customer value is a method of segmenting customer through analyzing customer value. In this paper, we design a new index system about customer value evaluation combining the theory of customer lifetime cycle. This index system evaluates customer value from two ways: lifetime stage of customer and development potential of customer. Then we select neural networks as evaluate method. At the end of this paper, we segment customer according to evaluate result and analyze the marketing strategy of each customer sort.

Key concepts: Customer lifetime value, Customer intelligence, Customer advocacy, Customer retention, Voice of the customer, Customer equity, Customer to customer, Customer profitability

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