RFM Value and Grey Relation Based Customer Segmentation Model in the Logistics Market Segmentation

  • Authors:
  • Xiong Weiwen;Chen Liang;Zhang Zhiyong;Qiu Zhuqiang

  • Affiliations:
  • -;-;-;-

  • Venue:
  • CSSE '08 Proceedings of the 2008 International Conference on Computer Science and Software Engineering - Volume 05
  • Year:
  • 2008

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Abstract

In CRM (Customer Relationship Management), the importance of a segmentation method for identifying good customers has been increasing. The paper recalls the development of domestic and foreign markets subdivision process and trends. This study presents a novel approach that combines customer targeting and customer segmentation for marketing strategies. This investigation identifies customer behavior using a recency, frequency and monetary (RFM) model and grey correlation model to evaluate proposed segmented customers. Models have taken into account the customer’s value for enterprises and logistics services that the customers are concerned about. The AHP (Analytic Hierarchy Process) algorithm is used to computer the weights of indicators. To demonstrate the efficiency of the proposed method, this work performs an empirical study of a logistics enterprise to segment 10 customers. The result shows the way to segment customer is effective. So it is easy to find high added customers based for enterprises to develop effective marketing strategies.