Weighted RFM

RFM (customer value) is a model that diversifies considerable customers from a mass of data by three attributes. Interval of customer consumption, frequency and payment value, are these three factors. Hughes (1994) considered that the three variables are equal in the importance; therefore, the weights of the three variables are identical. On the other hand, Stone (1995) indicated that the three variables are different in the importance due to the characteristic of industry. Thus, the weights of the three variables are not equal.[1]

References

  1. ↑ Peiman Alipour Sarvari, Alp Ustundag, Hidayet Takci , (2016),"Performance evaluation of different customer segmentation approaches based on RFM and demographics analysis", Kybernetes, Vol. 45 Iss 7 pp. - Permanent link to this document: http://dx.doi.org/10.1108/K-07-2015-0180
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