VIP-targeted 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' behaviors in open-markets is important to increase its revenue. Therefore, we propose CRM strategies targeted 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 and identifies influential factors customers into VIPs or non-VIPs. We also validate each of promotion types in the aspect of effectiveness and identify association rules among the types. Then, based on the findings from these experiments, we propose strategies from the perspectives of CRM dimensions for the open-market to thrive.

Add-on selling strategies in an online open market

“…Data mining techniques have been useful in previous CRM-related studies. These studies have applied data mining techniques to diverse cases in order to analyse and understand the customer behaviors and characteristics, and they have shown meaningful results (Bortiz et al ., 1995;Fletcher et al ., 1993;Langley et al ., 1995;Lau et al ., 2003;Salchenberger et al ., 1992;Su et al ., 2002;Tam et al ., 1992;Zhang et al ., 1999;Lee et al ., 2015). We review previous CRM domain literatures related to classification and association rules which we apply to analyse the add-on selling transactions in this paper.…”