Customer value analysis using weighted RFM model : empirical case study
Author
Source
Issue
Vol. 7, Issue 3 (31 Dec. 2021), pp.932-948, 17 p.
Publisher
Tahri Mohamed Bechar University Faculty of Economic Commerce and Management Sciences
Publication Date
2021-12-31
Country of Publication
Algeria
No. of Pages
17
Main Subjects
Topics
Abstract EN
The aim of this article is to provide a comprehensive methodology to perform customer value analysis.
First, we review the CLV concept, RFM model and other related concepts.
Then a case study for transactions database of a chosen company is presented.
We use Weighted RFM (recency, frequency and monetary) model to determine customers' lifetime value (CLV) and segment them based on k means clustering approach.
The relative weights of RFM model were determined by analytic hierarchy process (AHP).
Findings revealed that CLV analysis using RFM measures can help the company better understand its customers and locate the most profitable customers.
Therefore, the company can apply marketing strategies to maintain customer relationships more effectively.
American Psychological Association (APA)
Bilhadj, Tariq. 2021. Customer value analysis using weighted RFM model : empirical case study. Al-Bashaer Economic Journal،Vol. 7, no. 3, pp.932-948.
https://search.emarefa.net/detail/BIM-1304342
Modern Language Association (MLA)
Bilhadj, Tariq. Customer value analysis using weighted RFM model : empirical case study. Al-Bashaer Economic Journal Vol. 7, no. 3 (Dec. 2021), pp.932-948.
https://search.emarefa.net/detail/BIM-1304342
American Medical Association (AMA)
Bilhadj, Tariq. Customer value analysis using weighted RFM model : empirical case study. Al-Bashaer Economic Journal. 2021. Vol. 7, no. 3, pp.932-948.
https://search.emarefa.net/detail/BIM-1304342
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1304342
