Establishing high value markets for data-driven customer relationship management systems

Abstract

PurposeOnline customer relationship management (CRM) is an important issue for implementing digital marketing of electronic commerce or social commerce. The purpose of this study is to establish valuable markets for discovering customer knowledge from data-driven CRM systems for enhancing growth rates of businesses. Airline or travel agency industries are online businesses in the world. Therefore, the industries in Taiwan will be an empirical case for this study.Design/methodology/approachThis research applied a procedure with an applied proposed model for establishing valuable markets from data-driven CRM systems. However, the study used a proposed customer value model (recency, frequency and monetary [RFM]; RFM model-based), the analytic hierarchy process (AHP) procedure and a proposed equation for estimating customer values.FindingsFor enhancing the data-driven CRM marketing of the industries, in this research, the market of air travelers can be partitioned into eight markets by the proposed model. As well, the markets can be ranked by the AHP procedure. Furthermore, the travelers’ customer values can be estimated by a proposed customer value equation.Originality/valueVia the applied proposed procedure, online airlines, travel agencies or other online businesses can implement the research procedure as their data-driven marketing strategy on their online large-scale or Big Data customers’ databases for enhancing sales rates.