An Empirical Study on Customer Segmentation by Purchase Behaviors Using a RFM Model and K-Means Algorithm
Joint Authors
Xu, Guangshu
Shi, Li
Li, Yuanyuan
Yang, Liping
Wu, Jun
Tsai, Sang-Bing
Lin, Wen-Pin
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-7, 7 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-11-19
Country of Publication
Egypt
No. of Pages
7
Main Subjects
Abstract EN
In this paper, we base our research by dealing with a real-world problem in an enterprise.
A RFM (recency, frequency, and monetary) model and K-means clustering algorithm are utilized to conduct customer segmentation and value analysis by using online sales data.
Customers are classified into four groups based on their purchase behaviors.
On this basis, different CRM (customer relationship management) strategies are brought forward to gain a high level of customer satisfaction.
The effectiveness of our method proposed in this paper is supported by improvement results of some key performance indices such as the growth of active customers, total purchase volume, and the total consumption amount.
American Psychological Association (APA)
Wu, Jun& Shi, Li& Lin, Wen-Pin& Tsai, Sang-Bing& Li, Yuanyuan& Yang, Liping…[et al.]. 2020. An Empirical Study on Customer Segmentation by Purchase Behaviors Using a RFM Model and K-Means Algorithm. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-7.
https://search.emarefa.net/detail/BIM-1201834
Modern Language Association (MLA)
Wu, Jun…[et al.]. An Empirical Study on Customer Segmentation by Purchase Behaviors Using a RFM Model and K-Means Algorithm. Mathematical Problems in Engineering No. 2020 (2020), pp.1-7.
https://search.emarefa.net/detail/BIM-1201834
American Medical Association (AMA)
Wu, Jun& Shi, Li& Lin, Wen-Pin& Tsai, Sang-Bing& Li, Yuanyuan& Yang, Liping…[et al.]. An Empirical Study on Customer Segmentation by Purchase Behaviors Using a RFM Model and K-Means Algorithm. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-7.
https://search.emarefa.net/detail/BIM-1201834
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1201834