Research On Customer Relationship Management Based On Value Chain

With the development of network economics,the fury of the competition and variety of customer needs,the customers' behaviors and attitudes to products and services of customers are increasingly significant for enterprises' survival.It forced enterprises to develop and maintain the relationship with customers at a strategy level to gain sustainable competitive advantages.The paper aims at to develop an integrated framework for customer relationship management based on value chain and studied some key problems of customer relationship management(CRM)strategy.Through analyzing the new characteristics of customer actions and the changes of customers' role,retrospecting the origins and divergent perspectives of customer relationship management,and analyzing the localization of traditional marketing strategy,we proposed a framework of customer relationship management based on value chain,which implies customer perceived value and customer value are support points and they are in a interactive system,and information technologies are enablers.Enterprises should design their special CRM value chain by analyzing thye gaps to competitors in order that they can provide excellenent customer perceived value and make customer loyaty and acieve maximum customer value.The satisfied level of customer perceived value has a great influence to customer value.We proposed of model of customer life-time value including customer perceived value.The basic premise is that a customer purchases more frequently when she is happy than when she is disgruntled.We model customer purchase arrivals as Poisson events and allow the rate of arrival to depend on the satisfied level of customer customer perceived value of the most recent service encounter.We derive a closed-form formula for predicting total number of purchases from a customer base over a time period(0;T].This formula reveals that approximating the mixture arrival processes by a single Poisson process can systematically underestimate the total number of purchases.Since life-time value is an explicit function of customer perceived value,we can use our model as a tool for quantifying the marginal return for investing in customer perceived value.We show that life-time value is convex in customer perceived value satisfied level.Thus,it is optimal to pursue 100%customer perceived value satisfied level if the cost is linear.This finding suggests the classical RFM(Recency,Frequency and Monetary value)model should be extended.Firms can now use our formula to weigh the potential benefits against the costs of increasing customer perceived value.We analysized the role of CRM enabling technologies in the implementation of CRM strategy.Then we studied the thoery and methods of knowledge discovery,data warehouse and data mining and discussed the application of these technologies in Xuzhou Construction Machinery Group Co.,Ltd.And the results showed the technoligies can improve the performance of CRM,such as improve customer satisfaction,operation performance and profits and it is proved that the enabling technologies are the bases of CRM's success.More and more enterprises have implementated CRM strategy and how to evaluate the effectiveness of CRM become very important.Because of CRM's complexity,little research has been conducted in evaluating the effectiveness of CRM.Considering the principles of CRM based on value chain,the process model of CRM is set up and a customer-orientation evaluation model for evaluating the effectiveness of CRM is proposed,which includes four dimensionalities:customer knowledge,customer inactive,customer value and customer satisfaction.Becsause BP arithmetics can simulate evaluation made by experts and avoid subjective mistakes;we will use it to evaluate the effectiveness of CRM.The results from the simulation are satisfied.