Document Type : Research Paper

Authors

1 Ph.D. candidate of Public Administration, Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran

2 Assistant Professor,Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran

3 Master of IT management, Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran

4 PhD in Financial engineering, Faculty of Management and Economics, University of Sistan and Baluchestan, Zahedan, Iran

10.22105/riej.2021.291738.1229

Abstract

The main goal of this research is to identify key or strategic customers using the RFM model. In this part after determining the amount of RFM (recency, frequency, and monetary) in, registered transactions of one store in Iran (Refah Chain Store) at a time about seven months from 23 September 2017 to 20 April 2018 (71161 transactions as final inputs were used), the weight of each variable according to the fuzzy analytic hierarchy process was determined. At the next stage customers using the K-means and Two-step’s algorithms were clustered and K-means the method according to the Silhouette index was the better algorithm of this letter. According to the results, customers were segmented into three parts and customer lifetime value was calculated and for identifying key or strategic customer segmentation, the clustering process was repeated and priorities of all clusters were indicated. Results of data analysis are below: Segment 3: customers of this segment were 3425 members and 11.5% of all company customers were the most loyal customers those are identified as golden customer's segment and all of the variables were higher than average of all data. This research identified the valuable customers for the shop, and it gives them a chance to choose goal customers and invest in them, but it doesn’t mean that the shop doesn’t pay attention to the other customers, and they limited their effort to satisfy their profitable customers but it means that they allocated a suitable budget for performing the relationship programs with customers

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