Customer Value and Migration Analysis–Take Database of Credit Card as example
Date Issued
2011
Date
2011
Author(s)
Peng, Ming-Hsiu
Abstract
The main purpose of this considering consumer dynamic and consumer heterogeneity by theory of database marketing and statistical method, is to recognize the customer value which is based on a domestic bank’s database of credit card customers. In the first part of this research, we analyze customer value by indexes such as inter-purchase time, reliability index, activity index conducted by RFM model, Hierarchical Bayesian model and maximum likelihood estimates. Second, we build individual customer’s Transition Probability Matrix of Markov Chain to predict customer purchase state, and the average hit rate reaches 54%. Further, we set 6 meaningful paths and find out if there is any correlation within the transition paths and demographic variables. The contribution of this study could help enterprises verify customer value, identify customer’s transition paths, develop follow-up marketing strategies and build up long-term customer relationship.
Subjects
Database Marketing
Markov Chain
Hierarchical Bayesian Model
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-100-R99724061-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):701dde756f56053bca71ac7042fedf4a