A Comprehensive RFM-A Framework: Integrating Age for Enhanced Customer Segmentation and Marketing Strategies
Abstract
Customer segmentation is seen as one of the pillars of a successful advertising campaign. Marketers give great importance to this flagship phase in the process of new products marketing. Successful segmentation will involve successful ‘‘Customer Targeting” and therefore a profitable customer marketing campaign. Many works have dealt with customer segmentation by applying the famous Recency, Frequency and Monetary model. This model suffers from insufficiency by ignoring other important parameters according to the field of application. In this article, a new classification model is presented by adding the age ("A") as the fourth parameter, referring to the age of customers. The segmentation based on RFM-A is applied in a retail market in order to detect behavior patterns for a customer. The proposed model increases the quality of the prediction of customer behavior and Companies could predict, customers who will respond positively.
Keywords:
RFM, Segmentation, Customer, Age, Marketing, PredictionReferences
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