RFM ranking – An effective approach to customer segmentation
نویسندگان
چکیده
منابع مشابه
a new approach to customer segmentation in the fixed-line telecom using rfm model
in today's competitiveenvironment, customers are the most important asset to any company. therefore,in order to retain customers, it is essential to understandtheirbehaviour for developing effective strategies. one of the most commonmethods for customer analysis is market segmentation that helps companies todevelop marketing technique by dividing market into several smaller homogeneousgrou...
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RFM (Recency, Frequency, Monetary) analysis is a method to identify high-response customers in marketing promotions, and to improve overall response rates, which is well known and is widely applied today. Less widely understood is the value of applying RFM scoring to a customer database and measuring customer profitability. RFM analysis is considered significant also for the banks and their spe...
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Segmentation based on RFM (Recency, Frequency, and Monetary) has been used for over 50 years by direct marketers to target a subset of their customers, save mailing costs, and improve profits. RFM analysis is commonly performed using the Arthur Hughes method, which bins each of the three RFM attributes independently into five equal frequency bins. The resulting 125 cells are depicted in a tabul...
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In recent years, customer lifetime value (CLV) has gained increasing importance in both academia and practice. While many advanced techniques have been proposed, the recency/frequency/monetary value (RFM) segmentation framework, and its related probability models, remain a CLV mainstay. In this article, we demonstrate the de_ciency in RFM as a basis for summarizing customer history (data compre...
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This paper aims to explore the applicability of the RFM (Recentness,Frequency,Monetary) model in the customer segmentation of auto services companies, for which it obtains the weight of each index through the method of analytic hierarchy process (AHP) and segments the customers with K-means clustering method. This paper divides customers into several segments by comparing customer lifetime valu...
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ژورنال
عنوان ژورنال: Journal of King Saud University - Computer and Information Sciences
سال: 2018
ISSN: 1319-1578
DOI: 10.1016/j.jksuci.2018.09.004