Research On Dynamic CRM Modeling Based On Markov Model

Profits of companies come from customers. Effective customer relationship management is the essential prerequisite for survival and development of companies in fierce market competition. The main jobs of customer relationship management which companies considered include four parts, such as, identify, subdivision, promotion, Maintaining customer. This indicates that CRM is a periodic process, dynamic and long-term. So we need to study the Dynamic Customer Relationship Management (DCRM).The paper introduces the theory of traditional Customer Relationship Management briefly. Firstly it points out most of our research concentration on the static analyse. Secondly, it analyses the trends and essence of customer relationship management, and illuminates the trends and periodicity. Then, the paper makes DCRM a model by the Markov Model, and uses Customer Loyalty and Customer Lifetime Value to analyze the model. Finally, because customer state is a recessive variable, the paper improves the model by Hidden Markov Model.This paper makes a groping research on CRM and provides a method of modeling for Dynamic Customer Relationship Management, but it does not integrate the enterprise with practical CRM data as demonstration, which is the deficiency of this paper.