Abstract
Customers segmentation is the key to customer relationship management, this paper analyze RFM (recency, frequency, and monetary value) paradigm with customer, and use RFM value as clustering properties by K-means. The customers can be divided into four levels includes important keep customers, important development customers, general customers, worthless customers. And then through the AHP to determine weights of RFM three components of each cluster for further quantitative analysis of the cluster. Sort the lifetime value of customers according to scores of each type customer.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Bell, David, Deighton, J., Reinartz, W.J., Rust, P.T., Swartz, G.: Seven Barriers to Customer Equity Management. Journal of Service Research 5(8), 101–211 (2002)
Nan-Chen, H.: An integrated data mining and behavioral scoring model for analyzing bank customers. Expert System with Application 27, 623–633 (2004)
Pfeifer, P.E., Carraway, R.L.: Modeling Customer Relationships as Markov Chains. Journal of Interactive Maketing 14(2), 43–45 (2000)
Phillip, E., Haskins, M.E., Conroy, R.M.: Customer Lifttime Value,Customer Profitability and the Treatement of Acquisition Spending. Journal of Management Issues 17(1), 11–25 (2005)
Park, Y.-H., Fader, P.S.: Modeling Browsing Behavior at Multiple Websites. Marketing Science 23(9), 280–303 (2004)
Stone, B.: Successful Direct Marketing Methods. NTC Bussiness Books, Linco lnwood (1994)
Sheng, L., Xu, X., Sheng, L.: Telecom Customers Segmentation based on RFM. Academic Journal of Harbin Institute of Technology (05) (2006)
Bocheng, C., Bin, L.: Self-organizing map neural network (SOM) in the client application. Systems Engineering Theory and Practice (3), 7–14 (2004)
Atthirawong, W., McCarthy, B.: An Application of the Analytical Hierarchy Process to International Location Decision-Making. In: Gregory, M. (ed.) Proceedings of The 7th Annual Cambridge International Manufacturing Symposium: Restructuring Global Manufacturing, pp. 1–18. University of Cambridge, Cambridge (2002)
Baesens, B., Viaene, S., Poel, D., Vanthienen, J., Dedene, G.: Bayesian neural network for repeat purchase modelling in direct marketing. European Journal of Operational Research 138, 191–211 (2002)
Dyche, J., Dych, J.: The CRM handbook: a business guide to customer relationship management. Addison-Wesley, Reading (2001)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2011 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Xiong, J., Yao, L. (2011). Segmentaion of C2C Customer Using RFM Model. In: Zheng, D. (eds) Advances in Electrical Engineering and Electrical Machines. Lecture Notes in Electrical Engineering, vol 134. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-25905-0_70
Download citation
DOI: https://doi.org/10.1007/978-3-642-25905-0_70
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-25904-3
Online ISBN: 978-3-642-25905-0
eBook Packages: EngineeringEngineering (R0)