Segmenting retail customers with an enhanced RFM and a hybrid regression/clustering method

Fahed Yoseph; Markku Heikkilä

doi:10.1109/iCMLDE.2018.00029

Segmenting retail customers with an enhanced RFM and a hybrid regression/clustering method

Fahed Yoseph, Markku Heikkilä

Forskningsoutput: Kapitel i bok/konferenshandling › Publicerad konferensartikel › Vetenskaplig › Peer review

15 Citeringar (Scopus)

302 Nedladdningar (Pure)

Sammanfattning

Targeted marketing strategies use market segmentation for insight into the heterogeneity of the customer purchase lifecycle, but this often ignores the evolution of customer behavior over time causing retailers focus on unprofitable customers. By pairing the Recency, Frequency, Monetary scores with the Customer Lifetime Value model to segment customers of a medium-sized clothing and fashion accessory retailer in Kuwait. A modified regression algorithm investigates the customer purchase curve gaining knowledge from point-of-sales data to help the retailer make informed decisions. Clustering is by K-means and by Expectation Maximization. Cluster quality analysis reveals the former outperforms the latter to discover and suggest relevant market segments and appropriate marketing strategies.

Originalspråk	Odefinierat/okänt
Titel på värdpublikation	2018 International Conference on Machine Learning and Data Engineering (iCMLDE)
Förlag	IEEE
Sidor	109–116
ISBN (elektroniskt)	978-1-7281-0404-1
ISBN (tryckt)	978-1-7281-0405-8
DOI	https://doi.org/10.1109/iCMLDE.2018.00029
Status	Publicerad - 2018
MoE-publikationstyp	A4 Artikel i en konferenspublikation
Evenemang	International Conference on Machine Learning and Data Engineering (iCMLDE) - 2018 International Conference on Machine Learning and Data Engineering (iCMLDE) Varaktighet: 3 dec. 2018 → 7 dec. 2018

Konferens

Konferens	International Conference on Machine Learning and Data Engineering (iCMLDE)
Period	03/12/18 → 07/12/18

Nyckelord

Clustering
RFM model
Retailing
Segmentation

Åtkomst av dokument

10.1109/iCMLDE.2018.00029

Segmenting Retail Customers with Enhanced RFM Data using a Hybrid RegressionClustering Method.pdfAccepterat manuskript från författare, 586 KBLicens: Publisher rights policy

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