Abstract :
Customer retention is increasingly pressing issue in today’s competitive commercial arena. This is relevant and important for sales and services related industries. Practicing customer relationship management (CRM) demands the ability to explore the strategy of customer retention. Despite existing the importance of customer retention to CRM, there is a lack of a comprehensive and effective approach to realize it under dynamic markets. Identifying customer segments and tracking their change over time, mining the pattern of customer segmentation are important applications for companies who need to understand what their customers expect from them now and in the future. This is significant for companies who operate in dynamic markets better fit the needs and wants of customers who, driven by new innovations and competing products. In this paper, we present a model for customer retention which accounts for the dynamics of today’s markets. Our study provides a new road-map to guide future research concerning the application of data mining techniques in customer retention under dynamic markets.
