Customer Value Prediction Model Based on Markov Chain in B2C

According to the flexibility and predictive features of Markov chain model and the analysis of customers' historical behavior of RFM (recency, frequency, monetary), this paper employs these two models into the customer value prediction in B2C context. By refining the conventional RFM model, the prediction of the customer's value becomes more precise. Such method helps to make effective customer marketing and relationship management polices. The article also describes a case study that demonstrates its accuracy