Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment
The evaluation of customer loyalty have a significant impact on improving business processes. Ordinary methods of customer loyalty evaluation have been designed based on three components including; recency of transactions (R), the frequency of transactions (F) and the monetary value of transactions...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
2016-03-01
|
| Series: | Journal of Information Technology Management |
| Subjects: | |
| Online Access: | https://jitm.ut.ac.ir/article_55823_0690a07760b6a85fb697d2442a41c252.pdf |
| _version_ | 1811248482951888896 |
|---|---|
| author | Samira KHodabandehlou Ali Akbar Niknafs |
| author_facet | Samira KHodabandehlou Ali Akbar Niknafs |
| author_sort | Samira KHodabandehlou |
| collection | DOAJ |
| description | The evaluation of customer loyalty have a significant impact on improving business processes. Ordinary methods of customer loyalty evaluation have been designed based on three components including; recency of transactions (R), the frequency of transactions (F) and the monetary value of transactions (M). In this study, it has been attempted to examine some affective factors, including the total number of purchased goods, returned goods, discounts and the average delay of distribution and their impact on increasing quality of assessment be measured. The main objective of the current study is to propose a new model for customer segmentation based on their level of loyalty and to define appropriate strategies for each segment. The data set for this study is obtained for the customers of a food wholesale. The obtained data have been analyzed using Clementine 14.2 software application using MLP and RBF neural networks as well as the K-means algorithm. The results of the study show that the proposed method provides the highest level of accuracy for predicting the customers’ loyalty. Based on this proposed method, the customers are divided into five clusters (Loyal, potential, new, lost and churn customers) from the point of view of loyalty, with the characteristics of each cluster expressed based on the status of seven factors. Based on these characteristics, appropriate approaches for managing the customers in each segment are proposed. |
| first_indexed | 2024-04-12T15:28:52Z |
| format | Article |
| id | doaj.art-214b11d653d946ffb7b672678f52d922 |
| institution | Directory Open Access Journal |
| issn | 2008-5893 2423-5059 |
| language | fas |
| last_indexed | 2024-04-12T15:28:52Z |
| publishDate | 2016-03-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | Journal of Information Technology Management |
| spelling | doaj.art-214b11d653d946ffb7b672678f52d9222022-12-22T03:27:10ZfasUniversity of TehranJournal of Information Technology Management2008-58932423-50592016-03-018110112210.22059/jitm.2016.5582355823Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each SegmentSamira KHodabandehlou0Ali Akbar Niknafs1MSc. of Information Technology Engineering; Department of Electronic and Computer Engineering; Graduate University of Advanced Technology; Kerman; IranAssistant Prof.; Faculty of Computer Engineering Department; Shahid Bahonar University of Kerman; Kerman; IranThe evaluation of customer loyalty have a significant impact on improving business processes. Ordinary methods of customer loyalty evaluation have been designed based on three components including; recency of transactions (R), the frequency of transactions (F) and the monetary value of transactions (M). In this study, it has been attempted to examine some affective factors, including the total number of purchased goods, returned goods, discounts and the average delay of distribution and their impact on increasing quality of assessment be measured. The main objective of the current study is to propose a new model for customer segmentation based on their level of loyalty and to define appropriate strategies for each segment. The data set for this study is obtained for the customers of a food wholesale. The obtained data have been analyzed using Clementine 14.2 software application using MLP and RBF neural networks as well as the K-means algorithm. The results of the study show that the proposed method provides the highest level of accuracy for predicting the customers’ loyalty. Based on this proposed method, the customers are divided into five clusters (Loyal, potential, new, lost and churn customers) from the point of view of loyalty, with the characteristics of each cluster expressed based on the status of seven factors. Based on these characteristics, appropriate approaches for managing the customers in each segment are proposed.https://jitm.ut.ac.ir/article_55823_0690a07760b6a85fb697d2442a41c252.pdfCustomer SegmentationData Miningevaluation of customer loyaltyfood wholesale |
| spellingShingle | Samira KHodabandehlou Ali Akbar Niknafs Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment Journal of Information Technology Management Customer Segmentation Data Mining evaluation of customer loyalty food wholesale |
| title | Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment |
| title_full | Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment |
| title_fullStr | Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment |
| title_full_unstemmed | Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment |
| title_short | Proposing a New Method for Customer Segmentation Based on Their Level of Loyalty and Defining Appropriate Strategies for Each Segment |
| title_sort | proposing a new method for customer segmentation based on their level of loyalty and defining appropriate strategies for each segment |
| topic | Customer Segmentation Data Mining evaluation of customer loyalty food wholesale |
| url | https://jitm.ut.ac.ir/article_55823_0690a07760b6a85fb697d2442a41c252.pdf |
| work_keys_str_mv | AT samirakhodabandehlou proposinganewmethodforcustomersegmentationbasedontheirlevelofloyaltyanddefiningappropriatestrategiesforeachsegment AT aliakbarniknafs proposinganewmethodforcustomersegmentationbasedontheirlevelofloyaltyanddefiningappropriatestrategiesforeachsegment |