LRFM model for customer purchase behaviour using K-Means algorithm

Abstract

The COVID-19 pandemics have a major collision on every aspect of life, including how people shop for their requirements. As the pandemic has reshaped life as we know, it’s also initiated many trends – but the biggest of these trends may be online shopping. The shift toward online shopping was happening before the pandemic, but according to new statistics from IBM, the COIVD-19 has accelerated consumers shift toward online shopping by 5 years. The chief idea of the article is to inspect if the situation is approaching people to purchase things online and the continuation of shopping things online even after the end of pandemic. The information for the article has been gathered by circulating the survey on social networks. The questionnaire is comprised of 12 different questions, and 615 people responded to it. This work is based on LRFM (Length, Recency, Frequency, and Monetary) replica and separation of data based on the questionnaire using K-Means algorithm. Silhouette analysis helps to decide the extent of division among clusters. The results of the survey has a termination that people are fond of purchasing products online through the lockdown and people too agreed that the rate of online shopping will increase in the future when this pandemic is over.