• Title/Summary/Keyword: customer relationship management(CRM)

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A Methodology of Customer Churn Prediction based on Two-Dimensional Loyalty Segmentation (이차원 고객충성도 세그먼트 기반의 고객이탈예측 방법론)

  • Kim, Hyung Su;Hong, Seung Woo
    • Journal of Intelligence and Information Systems
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    • v.26 no.4
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    • pp.111-126
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    • 2020
  • Most industries have recently become aware of the importance of customer lifetime value as they are exposed to a competitive environment. As a result, preventing customers from churn is becoming a more important business issue than securing new customers. This is because maintaining churn customers is far more economical than securing new customers, and in fact, the acquisition cost of new customers is known to be five to six times higher than the maintenance cost of churn customers. Also, Companies that effectively prevent customer churn and improve customer retention rates are known to have a positive effect on not only increasing the company's profitability but also improving its brand image by improving customer satisfaction. Predicting customer churn, which had been conducted as a sub-research area for CRM, has recently become more important as a big data-based performance marketing theme due to the development of business machine learning technology. Until now, research on customer churn prediction has been carried out actively in such sectors as the mobile telecommunication industry, the financial industry, the distribution industry, and the game industry, which are highly competitive and urgent to manage churn. In addition, These churn prediction studies were focused on improving the performance of the churn prediction model itself, such as simply comparing the performance of various models, exploring features that are effective in forecasting departures, or developing new ensemble techniques, and were limited in terms of practical utilization because most studies considered the entire customer group as a group and developed a predictive model. As such, the main purpose of the existing related research was to improve the performance of the predictive model itself, and there was a relatively lack of research to improve the overall customer churn prediction process. In fact, customers in the business have different behavior characteristics due to heterogeneous transaction patterns, and the resulting churn rate is different, so it is unreasonable to assume the entire customer as a single customer group. Therefore, it is desirable to segment customers according to customer classification criteria, such as loyalty, and to operate an appropriate churn prediction model individually, in order to carry out effective customer churn predictions in heterogeneous industries. Of course, in some studies, there are studies in which customers are subdivided using clustering techniques and applied a churn prediction model for individual customer groups. Although this process of predicting churn can produce better predictions than a single predict model for the entire customer population, there is still room for improvement in that clustering is a mechanical, exploratory grouping technique that calculates distances based on inputs and does not reflect the strategic intent of an entity such as loyalties. This study proposes a segment-based customer departure prediction process (CCP/2DL: Customer Churn Prediction based on Two-Dimensional Loyalty segmentation) based on two-dimensional customer loyalty, assuming that successful customer churn management can be better done through improvements in the overall process than through the performance of the model itself. CCP/2DL is a series of churn prediction processes that segment two-way, quantitative and qualitative loyalty-based customer, conduct secondary grouping of customer segments according to churn patterns, and then independently apply heterogeneous churn prediction models for each churn pattern group. Performance comparisons were performed with the most commonly applied the General churn prediction process and the Clustering-based churn prediction process to assess the relative excellence of the proposed churn prediction process. The General churn prediction process used in this study refers to the process of predicting a single group of customers simply intended to be predicted as a machine learning model, using the most commonly used churn predicting method. And the Clustering-based churn prediction process is a method of first using clustering techniques to segment customers and implement a churn prediction model for each individual group. In cooperation with a global NGO, the proposed CCP/2DL performance showed better performance than other methodologies for predicting churn. This churn prediction process is not only effective in predicting churn, but can also be a strategic basis for obtaining a variety of customer observations and carrying out other related performance marketing activities.

Implementation of Data Integrity Module in Wireless Internet Terminal for Mobile Customer Relationship Management(m-CRM) (m-CRM을 위한 무선인터넷단말기의 데이터무결성 모듈의 구현)

  • Park, Hyun-Cheol;Kim, Dong-Gyu
    • The KIPS Transactions:PartD
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    • v.11D no.2
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    • pp.485-494
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    • 2004
  • Recently, the wireless internet terminals like mobile phones or PDAs prevail in the management of customers. With such terminals, businessmen can get business data and information of customers in real time, in connection with mobile group wares. By the wireless terminals, customers can conveniently get information of goods, search purchase sites, and give orders and do settlement. This paper aims to present the safe data integrity modules of the wireless internet terminal, for service providing correct real-time promotion information, by using users' disposition, situation, Purchase information. This study aims to suggest an implementation methodology of security module for data integrity of mobile internet terminal. This is based on the WTLS of WAP Protocol. This security module is expected to achieve central role in conversion of wireless internet environment and emphasis of encryption technology and safe and calculable wireless communication environment construction

Improving the Effectiveness of Customer Classification Models: A Pre-segmentation Approach (사전 세분화를 통한 고객 분류모형의 효과성 제고에 관한 연구)

  • Chang, Nam-Sik
    • Information Systems Review
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    • v.7 no.2
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    • pp.23-40
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    • 2005
  • Discovering customers' behavioral patterns from large data set and providing them with corresponding services or products are critical components in managing a current business. However, the diversity of customer needs coupled with the limited resources suggests that companies should make more efforts on understanding and managing specific groups of customers, not the whole customers. The key issue of this paper is based on the fact that the behavioral patterns extracted from the specific groups of customers shall be different from those from the whole customers. This paper proposes the idea of pre-segmentation before developing customer classification models. We collected three customers' demographic and transactional data sets from a credit card, a tele-communication, and an insurance company in Korea, and then segmented customers by major variables. Different churn prediction models were developed from each segments and the whole data set, respectively, using the decision tree induction approach, and compared in terms of the hit ratio and the simplicity of generated rules.

Influences of Relationship Benefits of Social Network Service on User-Perceived Usability and Brand Attitude (소셜네트워크서비스의 관계적 혜택이 이용자의 지각된 유용성 및 브랜드 태도에 미치는 영향)

  • Baek, Seung-Hee;Lee, Sang-Won
    • CRM연구
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    • v.4 no.2
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    • pp.31-41
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    • 2011
  • Supporting communications among users, Social Network has encouraged various information flows through relationships among them. This paper studies on mentality or attitude of Social Network Services (SNS for short) users, on the basis of Technology Acceptance Model (TAM for short) and then proposes so-called TAMS, Technology Acceptance Model for Social Network Services. SNS users make full use of SNS as channels in order to create, expand, and obtain some information related to personal concerns. We will research on how the benefits that users get by using SNS exert influence on user-perceived usability. The SNS-using benefits focus on relationship benefits that are formed by interactions among users. Provided that perceived usability affects mental or informational benefits according to involvement of SNS users, we will check how perceived usability or ease of use is connected to brand attitude.

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Balancing the Fair Use of Personal Information and Data Protection (개인정보의 적절한 이용과 보호의 균형)

  • Kim, Beom-Su
    • CRM연구
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    • v.1 no.1
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    • pp.71-85
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    • 2006
  • 인터넷 웹사이트를 통한 개인정보의 대량 유통, 상품배송기관을 통한 개인정보의 유출, 명의도용, 신용정보유출 등의 정보프라이버시 침해의 사례가 많이 발표되면서, 개인정보의 적절한 이용과 정보 프라이버시(Information Privacy)의 보호에 대한 관심이 날로 높아져가고 있다. 이러한 사회 현상과 시민의 관심을 반영하여 개인정보 보호를 위한 다양한 법률과 제도가 최근에 검토되고 있다. 이 연구에서는 이름, 전화번호, 주소, 전자우편주소 등 비교적 민감하지 않은 개인정보를 기업의 마케팅이나 홍보에 이용하는 경우의 좁은 의미에서의 개인정보 보호에 초점을 맞추었다. 이러한 개인정보 및 개인정보서비스 와 관련된 법률, 정책 및 제도를 정보의 생성과 이용의 흐름 및 경제주체를 중심으로 적절한 정보의 이용이 보장 되면서 개인의 정보프라이버시가 보호될 수 있는 방안을 마련하는 방법을 체계적으로 검토하였다. 해외의 개인정보서비스 산업의 사례 조사를 통하여 향후 우리나라에서 개인정보서비스산업이 활성화되었을 때 개인의 만족증대, 실질적인 정보보호 수준의 향상, 고용창출, 기업활동의 효율화, 관련기업의 국제경쟁력 고양 등의 기대효과가 있음을 보였다. 또한, 개인정보의 적절한 이용과 보호, 그리고 정보서비스산업의 활성화를 위하여 관련 법률의 제정 및 개정, 정보보호 제도의 개발 및 효과적 운영, 장기적 정보서비스 산업 활성화 정책 수립과 단계적 추진, 활성화를 위한 정부 및 민간 재원 확보, 사회적 공감대 형성, 지속적인 연구 등을 제안한다.

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An Extension of the VoiceXML Platform for Push-based Voice Applications (푸쉬형 음성 서비스를 위한 VoiceXML 플랫폼의 확장)

  • 김경란;홍기형
    • The Journal of the Acoustical Society of Korea
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    • v.21 no.1
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    • pp.27-36
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    • 2002
  • VoiceXML is a standard dialog mark-up language for the neat generation voice applications. The current VoiceXML 1.0 specification is silent on who place outbound calls for push-based voice applications. The push-barred voice applications become very important in modern information systems such as CRM. In this paper, we design and implement an extended VoiceXML platform that supports both inbound and outbound voice information services. We also extend the VoiceXML DTD so as to be able to inbound/outbound fax based on Call Control Requirements of W3C.

A Study on the Management Improvement of an Academic Library Using Customer Relationship Management (CRM 기법을 이용한 대학도서관 경영개선에 관한 연구)

  • Park, Il-Jong;Yoo, Kyeong-Jong
    • Journal of the Korean Society for information Management
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    • v.36 no.2
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    • pp.31-56
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    • 2019
  • The user satisfaction and needs of an academic library were caught through a questionnaire survey in this study. The aim of this study is to draw up the CRM based plan for meeting user needs on the study. The users' demographic information, library resources & their use, homepage, services, and facilities/environment of the library were categorized in the questionnaire and analyzed for this study. The major conclusions of this study are: (1) The library resources use was the highest, and its facilities/environment was the lowest in the user satisfaction study. It also revealed that there are much necessities for the quick acquisition and dissemination of the requested material to the library users, and for the inter-library loan (ILL) services among campuses for the subscription books in the library resources use study, too; (2) There are a lot of necessities for the improvement of OPAC retrieval and the subscription books system, and menu rearrangement in the library homepage; (3) There are a lot of necessities for the plans of more frequent library event, more detailed event guidance, and more reinforcement of public relations such as SMS, push services of SDI etc. in the library user services; and (4) There are a lot of necessities for the improved policies to the complaints of library users such as the lack of common study place and lockers, air conditioning and heating problem, complaints about facilities management of restroom (lack of toilet paper), library accessibility on campus, unauthorized user management etc. in the facilities/environment of the library.

Version Management of Business Processes Managed by BPM (BPM에서 관리되는 업무 프로세스의 버전관리)

  • Cho, Eunmi;Bae, Hyerim
    • Journal of Korean Institute of Industrial Engineers
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    • v.32 no.2
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    • pp.126-132
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    • 2006
  • Recently, business environments have been changing quickly. To establish competitive advantage, most enterprises have been using information systems such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM). Many consider Business Process Management (BPM) a new innovative solution for enterprise-wide processes. As the BPM system is used more widely and matures, new techniques and functions will be developed by commercial vendors. However, they mainly focus on correctly executing process models, and user convenience has not been considered. In this paper, we have developed a new method of designing business processes, which provides users with an easy modeling interface. The method is based on version management. Version management of a process enables a history of the process model to be recorded. In order to prevent wasted storage, not all of the process versions are stored. An initial version and changes to each process are stored by automatically detecting changes. Our method enhances the convenience of the modeling business processes and thus helps the process designer. A prototype system is presented to verify the effectiveness of our method.

Concept of Spatial Information Social Platform and Role of Government as a Platformer (공간정보 소셜플랫폼의 개념과 플랫포머로서 정부의 역할)

  • Choi, Won-Wook;Hong, Sang-Ki;Shin, Dong-Bin;Ahn, Jong-Wook
    • Spatial Information Research
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    • v.20 no.4
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    • pp.37-45
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    • 2012
  • Moving forward on smart society, change of the way to solve the spatial issue used in information society is required. In order to be competitive and sustainable spatial information service, existing "spatial information open platform" strategy needs to be transformed into "spatial information social platform". The requirement for the spatial information open platform to be socialized and evolved into the spatial information social platform is investigated with respect to the characteristics of social platform P. Savalle(2010) suggested. Based on the investigation, the definition of spatial information social platform is formulated. Several roles of the government as a platformer to create and manage the spatial information social platform are suggested.

A Simulation Study of IT Diffusion by Using System Dynamics (시스템 다이내믹스를 활용한 정보 기술 수용에 대한 동태적 모형 개발 - 휴대 전화 사용을 중심으로 -)

  • Han, Sang-Jun;Lee, Sang-Gun
    • CRM연구
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    • v.1 no.1
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    • pp.49-69
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    • 2006
  • Previous studies, Technology Acceptance Model (TAM) and Post Acceptance Model (PAM) have a little limitation in time series analysis. To solve this limitation, we used system dynamics as research methodology and designed simulation model based on TAM and PAM. Moreover, we designed new simulation model which can analyize time series data in customers' demand change from initial acceptance to post acceptance. This study targeted domestic mobile phone market. The simulation results showed that diffusion graph was similar to real data. That means we validated our simulation model. Since the simulation model offers the graph of customer's demand change by time, so it can be useful as a leaning tool. Therefore, we think this study helps IT companies use the model for forecasting of market demand.

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