New fuzzy RFMD model. A method to identify new customer profiles due to an increase in online activity. Case study of a retail business

2021 ◽  
Vol 39 (8) ◽  
Author(s):  
Rocio Gonzalez Martinez ◽  
Ramón Carrasco ◽  
Cristina Sanchez Figueroa ◽  
Diana Gavilán
Keyword(s):  
Customer Loyalty ◽  
Strategic Marketing ◽  
Analytic Hierarchy ◽  
Online Activity ◽  
Customer Lifetime ◽  
Rfm Model ◽  
Retail Business ◽  
The One ◽  
Customer Profiles

Gaining customer loyalty has become one of the main objectives of all companies. Retailers, especially the online ones, have the advantage of knowing their customers’ historical purchase data, which provides them with an understanding of the customers’ buying patterns. A widely-used tool in strategic marketing and customer loyalty is segmentation based on the traditional Recency, Frequency and Monetary (RFM) model. Subsequently, the fuzzy RFM model proved to be an improvement on the traditional RFM model. There has been a change in the retail customer profile, with the growth of a new cluster, the “One-Shot Customer”, new customers that buy from a retailer just once and never come back. In response to this change, the fuzzy RFM model has been modified to include a new dimension capturing Length or Duration. This study presents the new fuzzy RFMD model (Recency, Frequency, Monetary and Duration model), which can be used to better identify that new, large group of customers. The paper also provides a case study based on an e-commerce clothing retailer. Its customer database was segmented using the k-means algorithm and the Isolation Forest algorithm was applied to identify and correctly treat possible anomalies. The Customer Lifetime Value and the weights for the RFMD attributes were calculated by applying the Analytic Hierarchy Process (AHP) model. Results reveal the improvement that the weighted fuzzy RFMD model offers to retailers, enabling them to detect the One-Shot Customers and thus optimize their strategic marketing plans.

scholarly journals Customers Grouping Using Data Mining Techniques in the Food Distribution Industry (A Case Study)

2020 ◽  
Keyword(s):  
Data Mining ◽  
Customer Segmentation ◽  
Food Distribution ◽  
Data Mining Techniques ◽  
Customer Lifetime ◽  
Rfm Model ◽  
Marketing Activities ◽  
Using Data ◽  
Production Company

Significant data development has required organizations to use a tool to understand the relationships between data and make various appropriate decisions based on the information obtained. Customer segmentation and analysis of their behavior in the manufacturing and distribution industries according to the purposefulness of marketing activities and effective communication and with customers has a particular importance. Customer segmentation using data mining techniques is mainly based on the variables of recency purchase (R), frequency of purchase (F) and monetary value of purchase (M) in RFM model. In this article, using the mentioned variables, twelve customer groups related to the BTB (business to business) of a food production company, are grouped. The grouping in this study is evaluated based on the K-means algorithm and the Davies-Bouldin index. As a result, customer grouping is divided into three groups and, finally the CLV (customer lifetime value) of each cluster is calculated, and appropriate marketing strategies for each cluster have been proposed.

scholarly journals Double-way interrelations customers↔products

2014 ◽  
Vol 6 (5) ◽  
pp. 212-219
Author(s):  
Alexandru Trifu
Keyword(s):  
Customer Loyalty ◽  
The Other ◽  
Loyalty Programs ◽  
Negative Behaviors ◽  
Proper Functioning ◽  
Other Hand ◽  
The One ◽  
Customer Loyalty Programs

On the one hand, the impulse in the case of these interrelations and the proper functioning of any company producing/providing services is represented by the needs and motivation of the customers, these aspects leading to determining their behavior in the process of their acceptance / rejection of the products/services they are provided. On the other hand, the products or services should be tailored according to the requirements of the customers and consumers and they should consider the satisfaction of a set of desires and needs, including the ones expressed by the Maslow's Pyramid of Needs. In order to highlight these multidimensional double-way interrelations, one surely needs, at the same time, to use the marketing sub-function in a case study in symbiosis with the other functions, sub-functions and highlighting tools of the analyzed firm or company. Any purchasing act follows to simultaneous reach more goals, the consumer having to manage between positive motivations and the negative ones, the last category acting as a break. In the double-way interaction, the redirecting of the negative behaviors, along with the improving the supply characteristics are the appropriate ways of winning. A key role in this action is played by the customer loyalty programs which provide a strengthened interrelation and a win-win type beneficial strategy.

scholarly journals An RFM Model Customizable to Product Catalogues and Marketing Criteria Using Fuzzy Linguistic Models: Case Study of a Retail Business

Mathematics ◽  
2021 ◽  
Vol 9 (16) ◽  
pp. 1836
Author(s):  
Rocío G. Martínez ◽  
Ramon A. Carrasco ◽  
Cristina Sanchez-Figueroa ◽  
Diana Gavilan
Keyword(s):  
Customer Segmentation ◽  
Analytical Hierarchical Process ◽  
Rfm Model ◽  
Retail Business ◽  
Conventional Models ◽  
Selling Strategies ◽  
Definition Of ◽  
Fuzzy Linguistic ◽  
Linguistic Models

In the field of strategic marketing, the recency, frequency and monetary (RFM) variables model has been applied for years to determine how solid a database is in terms of spending and customer activity. Retailers almost never obtain data related to their customers beyond their purchase history, and if they do, the information is often out of date. This work presents a new method, based on the fuzzy linguistic 2-tuple model and the definition of product hierarchies, which provides a linguistic interpretability giving business meaning and improving the precision of conventional models. The fuzzy linguistic 2-tuple RFM model, adapted by the product hierarchy thanks to the analytical hierarchical process (AHP), is revealed to be a useful tool for including business criteria, product catalogues and customer insights in the definition of commercial strategies. The result of our method is a complete customer segmentation that enriches the clusters obtained with the traditional fuzzy linguistic 2-tuple RFM model and offers a clear view of customers’ preferences and possible actions to define cross- and up-selling strategies. A real case study based on a worldwide leader in home decoration was developed to guide, step by step, other researchers and marketers. The model was built using the only information that retailers always have: customers’ purchase ticket details.

scholarly journals MINING HIGH VALUE TRAVELERS USING A NEW MODEL DESIGNED FOR ONLINE CRM SYSTEMS: A CASE STUDY IN TAIWAN

Aviation ◽  
2014 ◽  
Vol 18 (3) ◽  
pp. 157-160 ◽  
Author(s):  
Wen-Yu Chiang
Keyword(s):  
Customer Value ◽  
Analytic Hierarchy ◽  
New Model ◽  
Rfm Model ◽  
Travel Industry ◽  
Online Travel ◽  
Value Ranking ◽  
Hierarchy Process ◽  
Customer Values

The purpose of this research is to investigate the mining of high value travelers for online travel agencies. For the research the AHP (analytic hierarchy process) procedure was applied with a new model of customer value on a database (RFM model based). In this article, the customer values of online travelers can be analyzed via a proposed equation (FMLC-CV), and the travelers can be ranked via a proposed FMLC model and the AHP procedure. According to the research logic, high value travelers can be discovered in the travelers’ database. Through the value ranking the value markets can be clustered according to value scores as well. The results can be applied to online CRM systems to help the travel industry realize the high value markets of travelers, and implement various marketing plans for different markets.

scholarly journals Evaluación de la oportunidad de inmovilización de un activo: Un estudio de caso para una microempresa del ramo de tecnologia de información aplicada a la construcción civil

2016 ◽  
Vol 6 (3) ◽  
pp. 284-298
Author(s):  
D. J. Souza ◽  
M. M. Sakamori ◽  
M. H. F. Medeiros ◽  
S. Scheer
Keyword(s):  
Information Technology ◽  
Real Estate ◽  
Enterprise Information ◽  
Analytic Hierarchy ◽  
Corporate Real Estate ◽  
Toma De Decisiones ◽  
The One ◽  
Hierarchy Process ◽  
Estudio De Caso

Evaluación de la oportunidad de inmovilización de un activo: Un estudio de caso para una microempresa del ramo de tecnologia de información aplicada a la construcción civil  RESUMENEl propósito de este artículo es analizar la posibilidad de inmovilización de inmuebles corporativos, teniendo en cuenta las expectativas de los usuarios corporativos de los inmuebles. Para ello, optamos por realizar el estudio de caso con una micro empresa en el sector de tecnologías de la información la construcción civil. Por lo tanto, fueron evalúdas las oportunidades y las alternativas: compra de bienes inmuebles, alquiler de corto plazo, alquiler de largo plazo y la construcción a la medida. El método de toma de decisiones utilizado fue de analisis jerárquico, ya que esta incluye criterios de decisión cualitativa y cuantitativa relevantes para la elección entre las distintas alternativas. El resultado final del análisis es la recomendación de la alternativa de elección, que mejor atienda principales por las partes interesadas.Palabras clave: inmovilización; la desmovilización; inmuebles corporativos; análisis jerárquico. Evaluation of an active immobilizing opportunity: A case study for a micro-enterprise information technology branch applied to construction ABSTRACTThe purpose of this article is the analysis of immobilizing opportunity to corporate real estate, taking into account the expectations of users of real estate corporations. For this, we chose the case study with a micro branch of information technology applied to construction. Thus, the purchase opportunities and alternatives were evaluated: a short-term lease, long-term lease and built-to-suit. The method of decision-making was hierarchical analysis; it contemplates decision criteria, qualitative and quantitative, relevant to the choice between the alternatives. The result of the analysis is to provide a recommendation of choice alternatives, starting from the one that best meets the criteria prioritized by stakeholders.Keywords: immobilization; demobilization; real estate; analytic hierarchy process. Avaliação da oportunidade de imobilização de um ativo: Um estudo de caso para uma microempresa do ramo de tecnologia de informação aplicada à construção civil RESUMOO objetivo deste artigo é analisar a oportunidade de imobilização de imóveis corporativos, considerando as expectativas das corporações usuárias dos imóveis. Para isto, optou-se pela realização de estudo de caso com uma microempresa do ramo de tecnologia de informação aplicada à construção civil. Assim, foram avaliadas as oportunidades e as alternativas: compra do imóvel, a locação de curto prazo, a locação de longo prazo e o built-to-suit. O método de tomada de decisão utilizado foi o da análise hierárquica, pois esta contempla critérios de decisão qualitativos e quantitativos relevantes à escolha entre as diferentes alternativas. O resultado final da análise é a recomendação da alternativa de escolha, que melhor atende aos critérios priorizados pelas partes interessadas.Palavras-chave: imobilização; desmobilização; imóveis corporativos; análise hierárquica.

scholarly journals A comparison between Fuzzy Linguistic RFM Model and traditional RFM model applied to Campaign Management. Case study of retail business.

2019 ◽  
Vol 162 ◽  
pp. 281-289
Author(s):  
Rocío González Martínez ◽  
Ramón Alberto Carrasco ◽  
Jesús García-Madariaga ◽  
Carlos Porcel Gallego ◽  
Enrique Herrera-Viedma
Keyword(s):  
Campaign Management ◽  
Rfm Model ◽  
Retail Business ◽  
Management Case Study ◽  
Fuzzy Linguistic

A CASE STUDY OF NL INFLUENCE IN UNIS FKIP ENGLISH DEPARTMENT STUDENTS' INTERLANGUAGE

2018 ◽  
Vol 18 (1) ◽  
pp. 46-54
Author(s):  
Irmala Sukendra ◽  
Agus Mulyana ◽  
Imam Sudarmaji
Keyword(s):  
Second Language ◽  
Second Language Acquisition ◽  
Native Speakers ◽  
Communicative Competence ◽  
Mother Tongue ◽  
Universal Grammar ◽  
Similar System ◽  
The One ◽  
L1 Acquisition

Regardless to the facts that English is being taught to Indonesian students starting from early age, many Indonesian thrive in learning English. They find it quite troublesome for some to acquire the language especially to the level of communicative competence. Although Krashen (1982:10) states that “language acquirers are not usually aware of the fact that they are acquiring language, but are only aware of the fact that they are using the language for communication”, second language acquisition has several obstacles for learners to face and yet the successfulness of mastering the language never surmounts to the one of the native speakers. Learners have never been able to acquire the language as any native speakers do. Mistakes are made and inter-language is unavoidable. McNeili in Ellis (1985, p. 44) mentions that “the mentalist views of L1 acquisition hypothesizes the process of acquisition consists of hypothesis-testing, by which means the grammar of the learner’s mother tongue is related to the principles of the ‘universal grammar’.” Thus this study intends to find out whether the students go through the phase of interlanguage in their attempt to acquire second language and whether their interlanguage forms similar system as postulated by linguists (Krashen).

Interrelationships between municipal spatial policy strategy and airport operation and development. Lodz Airport case study

2018 ◽  
Vol 59 (1) ◽  
pp. 65-79
Author(s):  
Katarzyna Nikorowicz-Zatorska
Keyword(s):  
Land Use ◽  
Urban Planning ◽  
Cultural Development ◽  
The Other ◽  
Local Authorities ◽  
Spatial Management ◽  
The One ◽  
Surrounding Areas

Abstract The present paper focuses on spatial management regulations in order to carry out investment in the field of airport facilities. The construction, upgrades, and maintenance of airports falls within the area of responsibility of local authorities. This task poses a great challenge in terms of organisation and finances. On the one hand, an active airport is a municipal landmark and drives local economic, social and cultural development, and on the other, the scale of investment often exceeds the capabilities of local authorities. The immediate environment of the airport determines its final use and prosperity. The objective of the paper is to review legislation that affects airports and the surrounding communities. The process of urban planning in Lodz and surrounding areas will be presented as a background to the problem of land use management in the vicinity of the airport. This paper seeks to address the following questions: if and how airports have affected urban planning in Lodz, does the land use around the airport prevent the development of Lodz Airport, and how has the situation changed over the time? It can be assumed that as a result of lack of experience, land resources and size of investments on one hand and legislative dissonance and peculiar practices on the other, aviation infrastructure in Lodz is designed to meet temporary needs and is characterised by achieving short-term goals. Cyclical problems are solved in an intermittent manner and involve all the municipal resources, so there’s little left to secure long-term investments.

De la gestión local a la gobernanza global: actores e interacciones multiniveles en la gestión del agua en la ciudad de México

2011 ◽  
Vol 1 (3) ◽  
pp. 34-66
Author(s):  
Joyce Valdovinos
Keyword(s):  
Private Sector ◽  
Water Governance ◽  
The State ◽  
Public Authorities ◽  
Service Contracts ◽  
Governance Model ◽  
Role Of The State ◽  
The One

The provision of water services has traditionally been considered a responsibility of the state. During the late 1980s, the private sector emerged as a key actor in the provision of public services. Mexico City was no exception to this trend and public authorities awarded service contracts to four private consortia in 1993. Through consideration of this case study, two main questions arise: First, why do public authorities establish partnerships with the private sector? Second, what are the implications of these partnerships for water governance? This article focuses, on the one hand, on the conceptual debate of water as a public and/or private good, while identifying new trends and strategies carried out by private operators. On the other hand, it analyzes the role of the state and its relationships with other actors through a governance model characterized by partnerships and multilevel networks.Spanish La provisión del servicio del agua ha sido tradicionalmente considerada como una responsabilidad del Estado. A finales de la década de 1980, el sector privado emerge como un actor clave en el suministro de servicios públicos. La ciudad de México no escapa a esta tendencia y en 1993 las autoridades públicas firman contratos de servicios con cuatro consorcios privados. A través de este estudio de caso, dos preguntas son planteadas: ¿Por qué las autoridades públicas establecen partenariados con el sector privado? ¿Cuáles son las implicaciones de dichos partenariados en la gobernanza del agua? Este artículo aborda por una parte, el debate conceptual del agua como bien público y/o privado, identificando nuevas tendencias y estrategias de los operadores privados. Por otra parte, se analizan el rol y las relaciones del Estado con otros actores a través de un modelo de gobernanza, definido en términos de partenariados y redes multi-niveles.French Les services de l'eau ont été traditionnellement considérés comme une responsabilité de l'État. À la fin des années 1980, le secteur privé est apparu comme un acteur clé dans la fourniture de certains services publics. La ville de Mexico n'a pas échappé à cette tendance et en 1993, les autorités publiques ont signé des contrats de services avec quatre consortiums privés. À travers cette étude de cas, nous nous interrogerons sur deux aspects : pourquoi les autorités publiques établissentelles des partenariats avec le secteur privé ? Quelles sont les implications de ces partenariats sur la gouvernance de l'eau ? Cet article s'intéresse, d'une part, au débat conceptuel sur l'eau en tant que bien public et/ou privé, en identifiant les tendances nouvelles et les stratégies menées par les opérateurs privés. D'autre part y sont analysés le rôle de l'État et ses relations avec d'autres acteurs à travers un modèle de gouvernance, défini en termes de partenariats, et des réseaux multi-niveaux.

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