Research On Customer Churn And Customer Segmentation

With the homogenization phenomenon of industry products and service is getting more and more common,companies is forced to make a strategic shift from "take the product as the center" to "take the customer as the center",which makes customer relationship management more important.Customer relationship management is an inevitable requirement for enhancing the competitiveness of enterprises and improving the value of the enterprise in the era of network economy.According to the research,the cost of attracting a new customer is 4-6 times as much as the cost of keeping an old customer,and there is a 10%reduction in the cost of customers when the churn rate of customers is reduced by 2%.To sum up,to provide customers with high quality service,and continuously improve customers satisfaction and loyalty,it has become an important work for enterprise marketing in the new situation.Data mining is one of the key technologies for customer relationship management to enable enterprises to obtain more customer information.The purpose of this paper is to construct a reasonable customer classification system,which enables enterprises to form a good customer service system in terms of customer service,sales and support,and bring long-term competitive advantage for the enterprise.From the point of view of the enterprise,the old customers are classified based on the combination of customer value management and data mining technology,which is able to mine the customers who are valuable and easy loss,and suggest the enterprises take corresponding strategic measures to those customers.According to the above ideas,the paper uses the corresponding data mining technology for the further discuss.This paper studies the behavior patterns of the churn of customers through the decision tree algorithm and survival analysis algorithm,and classifies the customers and find the customers who are valuable and easy loss by using the methods of cluster analysis.About the structure of the paper,it firstly summarizes the research status of customer relationship management and data mining technology at home and abroad,and systematically expounds the basic theory of customer relationship management and data mining.Then in the research of customers classification,the data mining method is cited,such as decision tree,survival analysis,cluster analysis,and the characteristics of the customer are analyzed systematically which improves the effect of the application.