• Title/Summary/Keyword: 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.

Model of Customer Classification Target Marketing in Automotive Corporation (자동차산업의 고객분류 및 타겟 마케팅 모델)

  • Lee, Byoung-Yup;Park, Yong-Hoon;Yoo, Jae-Soo
    • The Journal of the Korea Contents Association
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    • v.9 no.4
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    • pp.313-322
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    • 2009
  • Recently, According to computer technology has been improving, Massive customer data has stored in database. Using this massive data, decision maker can extract the useful information to make a valuable plan with data mining. Data mining offers service providers great opportunities to get closer to customer. Data mining doesn't always require the latest technology, but it does require a magic eye that looks beyond the obvious to find and use the hidden knowledge to drive marketing strategies Automotive market face an explosion of data arising from customer but a rate of increasing customer is getting lower. therefore, we need to determine which customer are profitable clients whom you wish to hold. This paper builds model of customer loyalty detection and analyzes customer patterns in automotive market with data mining using association rule and basic statics methods. With 4he help of information technology.

A Chemical Reactor Modeling for Prediction of NO Formation of Methane-Air Lean Premixed Combustion in Jet Stirred Reactor (제트 혼합 반응기 내 희박 예혼합 메탄-공기 연소의 NO 생성 예측을 위한 화학 반응기 모델링)

  • Lee, Bo-Rahm;Park, Jung-Kyu;Lee, Do-Yong;Lee, Min-Chul;Park, Won-Shik
    • Transactions of the Korean Society of Mechanical Engineers B
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    • v.34 no.4
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    • pp.365-373
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    • 2010
  • A chemical reactor model (CRM) was developed for a jet stirred reactor (JSR) to predict the emission of exhaust such as NOx. In this study, a two-PSR model was chosen as the chemical reactor model for the JSR. The predictions of NO formation in lean premixed methane-air combustion in the JSR were carried out by using CHEMKIN and GRI 3.0 methane-air combustion mechanism which include the four NO formation mechanisms. The calculated results were compared with Rutar's experimental data for the validation of the model. The effects of important parameters on NO formation and the contributions of the four NO pathways were investigated. In the flame region, the major pathway is the prompt mechanism, and in the post flame region, the major pathway is the Zelodovich mechanism. Under the lean premixed condition, the N2O mechanism is the important pathway in both flame and postflame regions.

The Evaluation Model for Interior Design Organizational Technology Integration: The quality of the design aid and economic evidence and factors

  • Choi, Seung-Pok
    • International Journal of Contents
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    • v.8 no.2
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    • pp.67-74
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    • 2012
  • Technological substitution is the process by which a radical technology replaces the dominant technology in an industry. The processes of diffusion and substitution have been modeled extensively (Technology & innovation, 2010). However, the formulation of classical quantitative models encompasses only part of the theoretical space. These models impose many simplified constraints to the achievement of analytical resolution. The interior design organization needs to establish a set of technical system requirements by describing the scope of the accessibility needs of the organization against current technology use. Because of complicated design resources and ongoing advances in design technologies, design systems face the challenge of prioritizing new technologies for supporting. The problem is small design organization administration often displays a lack of concern toward the evaluation of technology integration. In this paper, I will identify the influence of a design organization's technology, and predict how future technology will inform, support, and potentially hinder productivity, culture, and work satisfaction within a design organization in the industry. In addition, I will use current design organizational behavior and leadership models to support my predictions. Finally, I will examine a proven approach to assist designers with evaluating technology integration in interior design organization. The goal is to develop a high quality, professional development scorecards for the evaluation. I will conduct both the evaluation of technology integration and CRM performance evaluation is recommended to assess the effectiveness of technology integration. Therefore, the evaluation of integration technologies oriented design hold the promise of solving the organization application integration challenge. The evaluation of integration technology is a significant pattern for processing such a vision. The careful selection of an integration technology for this purpose is crucial in contributing toward the success of such an interior design organization endeavor.

A Case Study on the Building of Service Quality Improvement Strategies Using CSI, ESI and KPI: Focusing on Public Sector (고객만족도, 직원만족도와 핵심성과지표달성도를 이용한 공공서비스 품질개선전략 수립에 대한 사례연구)

  • Lee, Min-Jung
    • Information Systems Review
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    • v.13 no.3
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    • pp.83-97
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    • 2011
  • CRM (Customer relationship management) has become increasingly relevant in the public sector as citizens have become accustomed to high levels of service in private sectors. Public sectors have begun to emphasize on their customers and customer service quality. Thus to improve the service quality in citizens, public sectors conduct several types of surveys to analyze customer satisfaction and employee satisfaction on their product/services. Most of the public sector organizations, however, are reluctant to conduct the total survey targeting the whole teams and analyze the relationship among types of surveys because of the limitation of budget and time. In this paper, we propose the methodology to analyze the relationship of customer satisfaction index, employee satisfaction index and KPI achievement of whole teams and a framework which identifies key action initiatives and builds KPI.

A Case of NFC-based Exhibition Support System for Analyzing Visitors' POB (Point of Behaviors) (근접 무선 통신 기반 박람회 지원 시스템 구축 및 관람객 행동 데이터 분석 사례)

  • Choi, Myoung Hee;Jun, Jungho;Kang, Heegoo;Lee, Kyoung Jun
    • Information Systems Review
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    • v.15 no.2
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    • pp.111-127
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    • 2013
  • This research introduces a case of NFC (Near Field Communication)-based exhibition support system for analyzing visitors' POB (Point of Behavior) data gathered from the system. The application of NFC technology to an exhibition space allows visitors new experiences of exposition and exhibitors to collect and analyze data about behaviors of visitors. The NFC-based exhibition support system is applied to the 'Korea Travel Expo 2013.' The visitors' behaviors are analyzed based on collected NFC tag touch data and association rules among booths are extracted. Furthermore, the tag touch data are integrated with the survey data for catching the demographics-based implications.

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A Human Factors Approach for Aviation Safety (항공안전을 위한 인간공학적 대응)

  • Kim, Dae Ho
    • Journal of the Ergonomics Society of Korea
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    • v.36 no.5
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    • pp.467-484
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    • 2017
  • Objective: The purpose of this paper is to review, with the main focus on aviation safety technology and management program, how human factors are currently taken into consideration within transportation sectors, especially aviation, and to further share related information. Background: Human factors account for the majority of aviation accidents/incidents. Thus, the aviation sector has been comparatively quick in developing and applying technologies and management programs that deal with human factors. This paper reviews the latest safety technologies and management programs regarding human factors and aims to identify the trend. Method: This paper, based on literature research and practical experience, examines the latest international standards on technologies and management programs, those that deal with human factors and are adopted by international and domestic aviation organization. The main focus of discussion is how human factors are reflected during the system design and operation process. Results: The current most important issue in designing is the consideration of human factors in Cockpit, Automation, and Safety system technology design. From an operational point of view, the issues at hand are screening and training aviation workers to promote aviation safety, providing education on human factors and CRM/TEM, and running a safety management program to implement SMS. They were discussed based on the operational experience within the aviation sector. Conclusion: Major examples of a human factors approach to promote aviation safety are safety programs and various safety and monitoring technologies applied to aviation personnel for error management. These programs must be managed in an integrated manner that takes both the system designing and operational point of view into account. Application: It is thought that the human factors approach for promoting aviation safety reviewed in this paper can be extended and applied to safety management programs in other transportation sectors such as the railroad, maritime, road traffic etc.

Identification of the microstructural components of crumb rubber modified asphalt binder (CRMA) and the feasibility of using environmental scanning electron microscopy (ESEM) coupled with energy dispersive X-Ray spectroscopy (EDX) (ESEM과 EDX를 사용한 CRM 바인더의 미세구조 성분 분석)

  • Kim, Hyun Hwan;Mithil, Mazumder;Lee, Moon Sup;Lee, Soon Jae
    • International Journal of Highway Engineering
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    • v.18 no.6
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    • pp.41-50
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    • 2016
  • OBJECTIVES : In this study, microstructural components of crumb rubber modified asphalt (CRMA) binder were investigated using environmental scanning electron microscope (ESEM). To clearly understand the elemental composition of the CRMA binder, energy dispersive X-ray spectroscopy (EDX) was employed on the ESEM samples. METHODS : CRMA binders were produced using open blade mixers at $177^{\circ}C$ for 30 min. The binders were artificially aged through a series of accelerated aging processes. Sample preparation was done by making a mold shape on the glass slide. Thereafter, the morphology of the CRMA binder was observed using the ESEM coupled with the EDX. RESULTS : The images captured from the ESEM indicate that the unaged CRMA binder appears to have a single-phase continuous nonuniform structure after the addition of crumb rubber particles, whereas the artificially aged CRMA binder was observed to have two different phases. ESEM coupled with EDX shows detailed internal structure of the modified binders compared to other technologies (i.e., optical microscopy, atomic force microscopy, and conventional scanning electron microscope). CONCLUSIONS : The captured images resemble the internal structures such as the viscous properties of the unaged CRMA binder and the interaction between the rubber particles and the base binder at aged condition. ESEM is a powerful instrument and with the introduction of EDX, it provided more details of the network microstructure of the asphalt binder. ESEM coupled with EDX is recommended for use in future investigation of microstructure of asphalt binders.

A Study on the Factors Influencing on the Salesperson's Resistance to SFA (영업사원의 SFA(영업자동화시스템)에 대한 저항에 영향을 미치는 요인들에 대한 연구)

  • Park, Chan Wook;Li, Liang;Cho, Ara
    • Journal of Information Technology Services
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    • v.15 no.3
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    • pp.15-31
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    • 2016
  • Sales Force Automation (SFA) is a strategic information system and one of the components of operational CRM system. SFA supports salespeople's activities such as selection of potential customers, creative value proposition, after-sales services, etc. SFA is increasingly used in many companies because it has the advantages to raise the salespeople's productivity by developing forecasting ability, value proposition ability, after sales service ability etc. Many researches have shown that implementation of SFA leads to the increase of salepeople performance, organizational performance, and quality of customer relationship. However, Some prior studies have discussed on the SFA implementation failure and pointed out that one of important causes of this failure is salespeople's resistance to SFA. Although many researches explain SFA acceptance phenomenon using Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB), these researches didn't deeply investigate the salespeople's resistance to SFA. Therefore, this study focuses on the factors influencing salespeople's resistance to SFA and the relationships among these factors. This study identified three factors (salespeople's perceived loss of power, perceived loss of autonomy, and perceived time and effort waste) influencing salespeople's resistance to SFA. The hypotheses testing results showed that salespeople's perceived loss of power and perceived time and effort waste significantly increased salespeople's resistance to SFA. And salespeople's perceived loss of power plays a mediating role between perceived loss of autonomy/perceived time and effort waste and salespeople's resistance to SFA. At the end of the paper, theoretical and managerial implications of this study and the limitations and future research directions are discussed.

Determinants of Mass Customization Adoption in the Apparel Industry: Retail Managers' and Young Consumers' Point of View (의류매장 매니저와 20대 소비자의 매스커스터마이제이션 도입 결정요인)

  • Kim, Su-Yeon;Fiorito, Susan S.;Koh, Ae-Ran
    • Journal of the Korean Society of Clothing and Textiles
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    • v.33 no.6
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    • pp.968-979
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    • 2009
  • The purpose of this study was to examine the relationship between the willingness to adopt mass customization and four proposed characteristics: organizational, individual, technological, and environmental. Retail managers' and consumers' point of view was separately examined to distinguish their characteristics and willingness to adopt mass customization. The sample of this study consisted of 66 managers and 274 consumers in their twenties. The researcher obtained seven findings from the hypotheses testing. The determinants of mass customization adoption were managers' technology and environmental characteristics, and consumers' individual, technology, and environmental characteristics. The most influential variables for the willingness to adopt mass customization were technology characteristics and retailer's customer relationship management process, where customer satisfaction and customer relationships are the top priority in an organization.