Applying RFM model and K-means method in customer value analysis of an outfitter

Hsin Hung Wu; En Chi Chang; Chiao Fang Lo

doi:10.1007/978-1-84882-762-2_63

Applying RFM model and K-means method in customer value analysis of an outfitter

Hsin Hung Wu, En Chi Chang, Chiao Fang Lo

Department of Business Administration

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

12 Citations (Scopus)

Abstract

This case study applies RFM model and K-means method in the value analysis of the customer database of an outfitter in Taipei, Taiwan. By considering gender, birth date, shopping frequency, and the total spending, six clusters have been found among 675 member customers from the company's database. In addition to the clustering analysis, different promotion strategies for the members of different clusters are provided. The analyses show that Clusters 5 and 6 are the two most important groups that the company has to devote resources into. Moreover, the company might ration resources for the customers in Clusters 1 and 2 because they do not contribute enough values to the outfitter.

Original language	English
Title of host publication	Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering
Publisher	Springer-Verlag London Ltd
Pages	665-672
Number of pages	8
ISBN (Print)	9781848827615
DOIs	https://doi.org/10.1007/978-1-84882-762-2_63
Publication status	Published - 2009
Event	16th ISPE International Conference on Concurrent Engineering, CE 2009 - Taipei, Taiwan Duration: 2009 Jul 20 → 2009 Jul 24

Publication series

Name	Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering

Other

Other	16th ISPE International Conference on Concurrent Engineering, CE 2009
Country	Taiwan
City	Taipei
Period	09-07-20 → 09-07-24

All Science Journal Classification (ASJC) codes

Software

Access to Document

10.1007/978-1-84882-762-2_63

Fingerprint Dive into the research topics of 'Applying RFM model and K-means method in customer value analysis of an outfitter'. Together they form a unique fingerprint.

Cite this

Wu, H. H., Chang, E. C., & Lo, C. F. (2009). Applying RFM model and K-means method in customer value analysis of an outfitter. In Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering (pp. 665-672). (Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering). Springer-Verlag London Ltd. https://doi.org/10.1007/978-1-84882-762-2_63

Wu, Hsin Hung ; Chang, En Chi ; Lo, Chiao Fang. / Applying RFM model and K-means method in customer value analysis of an outfitter. Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering. Springer-Verlag London Ltd, 2009. pp. 665-672 (Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering).

@inproceedings{2b5516068dbb408ca21310cc6d3b9316,

title = "Applying RFM model and K-means method in customer value analysis of an outfitter",

abstract = "This case study applies RFM model and K-means method in the value analysis of the customer database of an outfitter in Taipei, Taiwan. By considering gender, birth date, shopping frequency, and the total spending, six clusters have been found among 675 member customers from the company's database. In addition to the clustering analysis, different promotion strategies for the members of different clusters are provided. The analyses show that Clusters 5 and 6 are the two most important groups that the company has to devote resources into. Moreover, the company might ration resources for the customers in Clusters 1 and 2 because they do not contribute enough values to the outfitter.",

author = "Wu, {Hsin Hung} and Chang, {En Chi} and Lo, {Chiao Fang}",

year = "2009",

doi = "10.1007/978-1-84882-762-2_63",

language = "English",

isbn = "9781848827615",

series = "Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering",

publisher = "Springer-Verlag London Ltd",

pages = "665--672",

booktitle = "Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering",

note = "16th ISPE International Conference on Concurrent Engineering, CE 2009 ; Conference date: 20-07-2009 Through 24-07-2009",

}

Wu, HH, Chang, EC & Lo, CF 2009, Applying RFM model and K-means method in customer value analysis of an outfitter. in Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering. Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering, Springer-Verlag London Ltd, pp. 665-672, 16th ISPE International Conference on Concurrent Engineering, CE 2009, Taipei, Taiwan, 09-07-20. https://doi.org/10.1007/978-1-84882-762-2_63

Applying RFM model and K-means method in customer value analysis of an outfitter. / Wu, Hsin Hung; Chang, En Chi; Lo, Chiao Fang.

Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering. Springer-Verlag London Ltd, 2009. p. 665-672 (Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

TY - GEN

T1 - Applying RFM model and K-means method in customer value analysis of an outfitter

AU - Wu, Hsin Hung

AU - Chang, En Chi

AU - Lo, Chiao Fang

PY - 2009

Y1 - 2009

N2 - This case study applies RFM model and K-means method in the value analysis of the customer database of an outfitter in Taipei, Taiwan. By considering gender, birth date, shopping frequency, and the total spending, six clusters have been found among 675 member customers from the company's database. In addition to the clustering analysis, different promotion strategies for the members of different clusters are provided. The analyses show that Clusters 5 and 6 are the two most important groups that the company has to devote resources into. Moreover, the company might ration resources for the customers in Clusters 1 and 2 because they do not contribute enough values to the outfitter.

AB - This case study applies RFM model and K-means method in the value analysis of the customer database of an outfitter in Taipei, Taiwan. By considering gender, birth date, shopping frequency, and the total spending, six clusters have been found among 675 member customers from the company's database. In addition to the clustering analysis, different promotion strategies for the members of different clusters are provided. The analyses show that Clusters 5 and 6 are the two most important groups that the company has to devote resources into. Moreover, the company might ration resources for the customers in Clusters 1 and 2 because they do not contribute enough values to the outfitter.

UR - http://www.scopus.com/inward/record.url?scp=84866381186&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84866381186&partnerID=8YFLogxK

U2 - 10.1007/978-1-84882-762-2_63

DO - 10.1007/978-1-84882-762-2_63

M3 - Conference contribution

AN - SCOPUS:84866381186

SN - 9781848827615

T3 - Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering

SP - 665

EP - 672

BT - Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering

PB - Springer-Verlag London Ltd

T2 - 16th ISPE International Conference on Concurrent Engineering, CE 2009

Y2 - 20 July 2009 through 24 July 2009

ER -

Wu HH, Chang EC, Lo CF. Applying RFM model and K-means method in customer value analysis of an outfitter. In Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering. Springer-Verlag London Ltd. 2009. p. 665-672. (Global Perspective for Competitive Enterprise, Economy and Ecology - Proceedings of the 16th ISPE International Conference on Concurrent Engineering). https://doi.org/10.1007/978-1-84882-762-2_63