Vip-Focused Crm Strategies In An Open-Market

Abstract

Nowadays, an open-market which provides sellers and consumers a cyber place for making a transaction over the Internet has emerged as a prevalent sales channel because of convenience and relatively low price it provides. However, there are few studies about CRM strategies based on VIP consumers for an open-market even though understanding VIP consumers’ behaviours in an open-market is absolutely important to increase its revenue. Therefore, we propose CRM strategies focused on VIP customers, obtained by analyzing the transaction data of VIP customers from an open-market using data mining techniques. To that end, we first defined the VIP customers in terms of recency, frequency and monetary (RFM) values. Then, we used data mining techniques to develop a model which best classifies customers into VIPs or non-VIPs. We also validate each of promotion types in the aspect of effectiveness to VIP customers and identify association rules among the types from the transactions of VIP customers. Then, based on the findings from these experiments, we propose strategies from the perspectives of CRM dimensions such as customer identification, attraction, retention and development for the open-market to thrive