Study on the Dual Optimization of Service Marketing and Customer Churn Management

In course of service marketing management, the decision-maker has to face various resource allocation problems concerning managerial elements. He/she should do his/her utmost to optimize the resource input and achieve an optimal marketing effect. This paper applies interactive genetic algorithms to set up a model for the dual optimization of service marketing and customer churn management, and have simulation research on it. Firstly, the concepts of service marketing and customer churn as well as the influential factors are delimitated; then the idea and principle of genetic algorithms are explored to set up a model of dual optimization, that is, to optimize these indexes, such as total cost and customer churn rate, etc, under the condition of maximum satisfaction of needs; finally, by simulation study, it turns out that the model can achieve the aim of dual optimization of service marketing and customer churn management. In addition, another result is achieved that interactive genetic algorithm ensures fast convergence rate of the whole algorithm, provides the decision-maker with a group of satisfactory solutions with relatively uniform distribution and increases the selection space of the decision-maker.