• Journal of the Korean Data and Information Science Society
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• v.23 no.3
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• pp.515-523
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• 2012

Most companies make efforts to maximize their profitability by improving loyalty to existing customers through customer relationship management (CRM). According to the Wikipedia, CRM is a widely implemented strategy for managing a company's interactions with customers, clients and sales prospects. And RFM is a method used for analyzing customer behavior and defining market segments. It is commonly used in database marketing and direct marketing and has received particular attention in retail. In general, one considers recency, frequency, and monetary for customer segmentation in RFM method. In this paper, we apply RFMP method added to the purchase period of advertising items in the traditional RFM model for real estate customer segmentation. We will be able to establish the differentiated marketing strategy by RFMP method.

• Journal of the Korean Data and Information Science Society
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• v.24 no.2
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• pp.245-255
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• 2013

The object of study is to propose a method for grouping R, F, and M in RFM model. Our model uses 6 levels using standard normal distribution. First level is upper 2.5% and second level next 13.5%, third level next 34%, fourth level next 34%, fifth level next 13.5%, sixth level next 2.5%. Values are symmetric and limits are clear. We compare proposed model with traditional 5 level model and 10 level model using NDSL data of KISTI. Proposed model divides most clearly the distribution of the RFM function for all cases of weights, because it uses the distribution of customers. Comparison studies of our model with grouping using cluster analysis and studies on weights of RFM model are needed.