JOAMS 2021 Vol.9(1): 1-4
doi: 10.18178/joams.9.1.1-4
doi: 10.18178/joams.9.1.1-4
Analysis of the Customer Value and Loyalty on Business
Zihang Weng
Pennsylvania State University, State College, 16801, USA
Abstract—This paper focuses on the existing constraints in the operation of an e-commerce company, Yaheetech, under the global outbreak of Covid-19. The unprecedented increase in profits brings the company a large population of customers and the company has no experience in analyzing customer value and royalty. The company is eager to develop its new customers into future assets and afraid of losing its customer by the time Covid-19 is well handled. With the stated goal of the company, this paper aims at analyzing customer value and royalty by using the Recency-Frequency-Monetary (RFM) model. The data used in this paper is from the order records of the independent websites consists of 9875 items. Through the process of cleaning data, calculating the value of variables and construct the rating system, the model can segment the large population of customers into 8 distinct characteristic clusters which allow the company to apply specific strategies for different customers.
Index Terms—customer value, customer royalty, RFM model, customer segmentation, clustering, business analysis
Cite: Zihang Weng, "Analysis of the Customer Value and Loyalty on Business," Journal of Advanced Management Science, Vol. 9, No. 1, pp. 1-4, March 2021. doi: 10.18178/joams.9.1.1-4
Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License (CC BY-NC-ND 4.0), which permits use, distribution and reproduction in any medium, provided that the article is properly cited, the use is non-commercial and no modifications or adaptations are made.
Cite: Zihang Weng, "Analysis of the Customer Value and Loyalty on Business," Journal of Advanced Management Science, Vol. 9, No. 1, pp. 1-4, March 2021. doi: 10.18178/joams.9.1.1-4
Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License (CC BY-NC-ND 4.0), which permits use, distribution and reproduction in any medium, provided that the article is properly cited, the use is non-commercial and no modifications or adaptations are made.