Analysis for Customer Lifetime Value Categorization with RFM Model

• DOI: 10.1016/j.procs.2019.11.190
• Publication Date: 2020-01-02T16:15:35Z
• Authors: Siti Monalisa; Putri Nadya; Rice Novita
• Keywords: Customer Equity; Customer profitability; Customer Lifetime Value; Customer to customer; Customer intelligence

The same treatment of all customers will cause who are not so valuable be value destroyer rather than a creator. Giving discounts and promos to has provided benefits company in retaining customers. These two things currently being experienced by LWC Company that changes needed evaluating the strategy taken keep relationship with customers, especially potential forming customer portfolios. Customers portfolios can analyzed from transactions. With transactions data, find out which do give less for company. way analyze transaction data is clustering Fuzzy C-means algorithm using RFM model. Forming number clusters validated PCI model ranking done multiplying AHP weight life it known group gives high result this research categorized as superstar customer, typical dormant customer. Based on portfolio, carry managing their according type portfolio.