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Research on the Customer Classification of China’s High-speed Rail

Author: YuanFang
Tutor: ZuoXiaoDong
School: Beijing Jiaotong University
Course: Business management
Keywords: High-speed rail Customer value Customer Classification
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 115
Quote: 1
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Abstract


With the rapid development of China’s high-speed rail technology and construction, railway passenger capacity has been greatly improved. At the same time, high-speed railway traffic is growing, the passengers request better high-speed rail service, and the transport market started to change from a seller to a buyer’s market so that competition between the various modes of transport became fiercer. In this condition, implementing customer relationship management, classifying customers and carrying out different service for various customers, not only could meet customers’ needs, but also enhance the competitiveness and the comprehensive strength of China’s high-speed railway enterprises.Customer classification of high-speed railway in China can help the railway enterprises to capture, track, and integrate information of high-value customers, and introduce appropriate service and product for the appropriate customers at the appropriate time. At the same time, it could make the railway enterprises recognize the importance of quality of customer service, and provide customers with more considerate service, to attract and retain more customers to effectively manage customer relationships, reduce CRM costs, and improve the economic efficiency of enterprises. Through customer classification based on customer value, we could clear that which customers make bigger contributions, which can improve customer value through the improvement of related services, in order to guide the enterprises to improve decision-making ability in customer service.Firstly, the paper described and summarized high-speed rail at home and abroad and the customer relationship management status, and made a study of CRM theory and the theory of value-based customer classification. Then built customer classification model based on customer lifetime value through the combination of the customer’s current value, potential value and loyalty, and described the customer classification process and method in detail. Finally, using the example of the Beijing-Tianjin intercity high-speed railway, the paper conducted an empirical study on the classification model based on customer value, calculated the index weights with hierarchical analysis, and using K-means clustering method and the ABC classification divided the customers into high-value customers, the general value customers and low-value customers.The innovation of this paper is to combine the customer’s current value, potential value and loyalty, and to establish the evaluation system and classification model based on customer lifetime value combined with the relevant characteristics of China’s high-speed railway companies. Through the classification of China’s high-speed rail customers, it can help scientific judgment of the high-speed railway enterprises and the maintenance of high-value customers, and help enterprises effectively enhance the customers of general value into high-valued ones, in order to create greater profits and improve the comprehensive competitiveness for the enterprise.

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