Customer Profitability Segmentation for SMEs Case Study: Network Equipment Company

Document Type: Research Paper

Authors

Department of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran

Abstract

It is important to segment the most profitable customers of a company. Many CRM researchers have been performed to calculate customer profitability and develop a comprehensive model of it. This paper with the aid of data mining tools tries to customer segmentation based on kind of RFM. Customers are clustered using K-means and finally calculated CLV. This approach is essential for an SME to be able to provide a personalized service to each customer and to reach customer satisfaction.

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