Customer Value Prediction Model Based on Markov Chain in B2C

Author

Hui-min, Ma ; Jian-ling, Chen ; Kai, Zhu

Author_Institution

Sch. of Manage., Huazhong Univ. of Sci. & Technol.

fYear

2006

fDate

5-7 Oct. 2006

Firstpage

52

Lastpage

55

Abstract

According to the flexibility and predictive features of Markov chain model and the analysis of customers´ historical behavior of RFM (recency, frequency, monetary), this paper employs these two models into the customer value prediction in B2C context. By refining the conventional RFM model, the prediction of the customer´s value becomes more precise. Such method helps to make effective customer marketing and relationship management polices. The article also describes a case study that demonstrates its accuracy

Keywords

Internet; Markov processes; customer relationship management; electronic commerce; B2C context; Markov chain; Markov chain model; customer historical behavior analysis; customer marketing; customer relationship management policy; customer value prediction model; Context modeling; Costs; Customer relationship management; Frequency; Marketing management; Predictive models; Statistics; Technology management; B2C; Customer value prediction; Markov chain; RFM;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering, 2006. ICMSE '06. 2006 International Conference on

Conference_Location

Lille

Print_ISBN

7-5603-2355-3

Type

conf

DOI

10.1109/ICMSE.2006.313843

Filename

4104866