Study on airline customer value evaluation based on RFM model

Based on the limited resources of airlines, the high-value customers should deserved more resources. As a result, how to find these higher-value customers is an urgent problem to be solved for the airlines. This paper gave a brief description of the customer value and its construction (current value and potential value), which was defined by RFM model. And we proposed a framework to analyze and calculate customer value. We calculated the current value by subtracting the absorption cost of every customer from the total amount every customer paid, assessed the potential value of customers by adopting Analytical Hierarchy Process(AHP) to construct the assessment system of customer potential value. By evaluating customer value, we can identify high-value customers for the airlines, which is extremely important for airlines to make proper marketing strategies and realize precise marketing.