A classification algorithm: Data mining and mathematical model

Abstract

In this paper, we propose a classification algorithm based on Recency-Frequency-Monetary (RFM) model and K-means data mining method. In addition, the designed algorithm is verified by the experiments on the member data in a large shopping mall. The experiments results show that the proposed algorithm can provide an accurate classification of the members. Finally, some marketing strategies for different classes of members are given according to the classification results.