Customer Behavioral Segmentation Using RFM Analysis

Abstract

Most of the companies faced a problem to find out which is most potential customers of that company. It is very essential to conduct this communication for business incoming enhancement. The relationship between a business organization and its customers is called Customer Relation Management (CRM). This research main aims to find out who is most valuable customers and divide the customer into different subgroup by using their similar behavior, demographic and geographic characteristics, like: age, region, country, social, lifestyle, etc. Furthermore, the organization be able to categorize customer's behavior, attitude, characteristics. Moreover, companies can understand which customers are most important and which are not by their wisdom. The method of dividing the customer based on their behavior in the different segments is called customer behavioral segmentation.