Document Type : Research Paper

Authors

• A. Mesforoush
• M.J. Tarokh

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.

Keywords

• Customer Relationship Management
• Customer Lifetime Value
• Data mining
• RFM
• SMEs