Complex Networks And Its Application To Customer Relationship Management

A strong capacity to manage customers is becoming a prerequisite for the survival and development of many modern enterprises. With the advent of complex network research, its application to the scientific approach of customer relationship management systems seem to be of theoretical and practical relevance, providing an innovative approach to analyze customer management problems.In this thesis, complex customer networks are characterized by varying topological measurements such as node degree, degree distribution, average path length, clustering coefficient, and cut-set coefficients. Complex customer network models are then constructed to analyze how these topological characteristics affect the extent and impact of the relationship and amount of connectedness between the company and the customers, and between the customers themselves.Network ripple effect and related mechanisms are studied in relation to the spread of word-of-mouth customer information and its effect on the purchasing decision. The relationship between customer loyalty and the network ripple coefficient is analyzed, resulting in suggestions for improvement of customer loyalties in complex customer networks.The issue of customer loss is also studied based on the construction of customer loss models with varying characteristics. These models are used to suggest ways to reduce the loss of customers, and improve the customer network stability. At the same time, a complex customer network efficiency concept is introduced. In-depth analysis of existing network efficiency evaluation methods points to some of their problems, and established the extension of Analytic Hierarchy Process (AHP) to carry out customer network efficiency evaluation and analysis.Finally, the issue of the gap between customer service expectations and management is also studied and analyzed. Basic control methods such as pinning control is applied to a complex customer network to study the controllability of the networks as a function of the network characteristics. In summary, complex network theory is applied to customer relationship management network modeling and analysis in this thesis through the means of:system analysis and system integration; localized characterization and integrated analysis; qualitative analysis and quantitative modeling; and the application of both theoretical and applied/practical considerations.