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1.2Purpose and SignificanceCustomer relationship is the foundation for the survival and development ofenterprise,at the same time is the most important assets of the enterprise. Customerresources will be one of the most important resource for enterprise to win. Choosingvalued customers, managing and maintaining targeted customers enable enterprises to exist and grow in new environments. In recent years,membership system as a senior marketing mode has been in the favor of Chinesebusinesses, and widely used in department stores, supermarkets, warehouse stores,and some other retail industries.It has been proved to be effective businessmarketing,which has existed more than 60 years in developed countries. Membershipin the process of its development, however, doesn’t reached expected effect. Manyworld famous retailers such as Wal-Mart, Metro, their affiliate sales in China are notsatisfactory.At the same time, for those with membership system, too few loyalmembers is a big problem.[1] Some customers hold more than a dozen different retailstore membership cards, but they are not as businesses expected to be loyal to it andconsume continually after getting membership cards. Thus the development ofmembership system gets stuck in an awkward position.So there have always beensome disagreements on the development of membership system.In the fierce market competition environment，increasing capacity of CRM tostrengthen value of resource of customer relation so as to foster long-termcompetitive advantages is very urgent and daunting for enterprises. On one hand, thispaper is aimed at scientifically analyzing the existing problems of membershipsystem in cosmetics industry and finding out main factors of customer retention andcustomer loyalty based on various influencing factors with industry characteristics. Atlast, some suggestions on membership system are given pertinently. I hope this paperwill offer some helpful reference for the set of membership system, bringing win-winsituation to the enterprise and customers by using membership system. On the other hand, this paper aims to call for cosmetic retail enhancing cognition of membershipsystem and effectively increasing customer loyalty by designing reasonablemembership system.Customer-oriented is a top priority in modern competition amongenterprises ; the more its loyal consumers, the greater the competitive advantage.Therefore, tapping the potentials of membership system in maximum andimplementing differential marketing strategies for different customers, are the key tosuccess for retail marketing. Using database, implementing differential marketingstrategies for different customers provides consumers with personalized, customizedproducts and services, and product information to consumers at the right time. That iso improve the level of the retailer's sales by providing consumers with personalizedmarketing strategy.
1.3 Frame of the ResearchChapter one explains how membership system comes up, why it is so importantto the enterprise and customers, what role it plays in commercial activity, as well asthe significance of the research..Chapter two is about literature review, some relevant theoretical knowledge andcurrent situation and existing problems in domestic cosmetic industry.Chapter three briefly describes the research design of this paper, which includesthe information collection about the current membership system situation and analysison the membership system from the perspective of qualitative..Chapter four focuses on the analysis of the advantages of the new membershipbased on the data collection, which demonstrates the superiority of the new