A new methodology to study customer electrocardiogram using RFM analysis and clustering

Abstract

One of the primary issues on marketing planning is to know the customer's behavioral trends. A customer's purchasing interest may fluctuate for different reasons and it is important to find the declining or increasing trends whenever they happen. It is important to study these fluctuations to improve customer relationships. There are different methods to increase the customer's willingness such as planning good promotions, an increase on advertisement, etc. This paper proposes a new methodology to measure customer's behavioral trends called customer electrocardiogram. The proposed model of this paper uses K-means clustering method with RFM analysis to study customer's fluctuations over different time frames. We also apply the proposed electrocardiogram methodology for a real-world case study of food industry and the results are discussed in details.