Research on improved RFM customer segmentation model based on K-Means algorithm

Abstract

The RFM model used for customer segmentation in the traditional retail industry is not suitable for the industry with distinct attributes of social groups, so the RFMC model is created by introducing the parameter C of social relations. Educational e-commerce enterprise M is selected for empirical study, and k-means algorithm is used for cluster analysis of valid customers of enterprise M, which resulted in 5 distinct customer groups and verified the effectiveness of the model.