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Review of customer segmentation method in CRM

CRM is a significant component of marketing that a growing number of scholars are paying attention to. The scholars all over the world have explored some of the applicable management methods in theory and practice. The customer segmentation (CS) is the basis of CRM study, which divides the total customers into some analogous groups according to the diversity of purchasing behavior and characteristic, provide relevant production and service to targeted customer groups. The essay summarizes five kinds of CS methods in traditional market segmentation and makes some analysis and research about the efficiency and applicability.