Year of Graduation
An Approach to Customer Retention in a Book Store
This paper is the practical implementation analysis of a way for customer retention. Urgency of this question is explained by firm’s intention to build long-term relationships with clients in order to make business sustainable. The research methodology consists in using BG/NBD probability model for evaluating amount of books will be bought in the future. After that consumers for the experiment were chosen based on predicted figures made by the model. They were defined by the criterion: predicted values of books were bought should be less than one. Data include sales checks of the Perm book store. The period of analysis starts from 1 January 2015 and continues to 31 April 2017. The product category under consideration is books. The key feature of the data is the significant heterogeneity of consumers. The study shows that using marketing email shot it is possible to activate the part of clients who are the most vulnerable in terms of loss from an active client base.