Is he Becoming an Excellent Customer for us? A Customer Level Prediction Method for a Customer Relationship Management System

Abstract

This paper proposes a method that predicts customer value by focusing on purchasing behavior. The method generates a relevance model for purchase days and amount in each period between customer value and purchasing histories beforehand based on a consumer panel survey. The authors adopt the random forest method to generate the prediction model. The proposed method facilitates the provisioning of smart customer management to each customer according to level such as suggesting products or services.