VIP-targeted CRM strategies in an open market

Abstract

Nowadays, an open-market which provides sellers and consumers a cyber place formaking a transaction over the Internet has emerged as a prevalent sales channel be-cause of convenience and relatively low price it provides. However, there are few studiesabout CRM strategies based on VIP consumers for an open-market even though un-derstanding VIP consumers' behaviors in open-markets is important to increase itsrevenue. Therefore, we propose CRM strategies targeted on VIP customers, obtainedby analyzing the transaction data of VIP customers from an open-market using datamining techniques. To that end, we rst de ned the VIP customers in terms of recency,frequency and monetary (RFM) values. Then, we used data mining techniques to de-velop a model which best classi es and identi es inuential factors customers into VIPsor non-VIPs. We also validate each of promotion types in the aspect of e ectivenessand identify association rules among the types. Then, based on the ndings from theseexperiments, we propose strategies from the perspectives of CRM dimensions for theopen-market to thrive.