Research Article

Customer Segmentation Using K-Means Clustering Algorithm and RFM Model

Volume: 25 Number: 74 May 15, 2023
TR EN

Customer Segmentation Using K-Means Clustering Algorithm and RFM Model

Abstract

The key points in customer segmentation are determining target customer groups and satisfying their needs. Recency-Frequency-Monetary (RFM) analysis and K-Means clustering algorithm are the popular methods for customer segmentation when analyzing customer behavior. In our study, we adapt the K-means clustering algorithm to RFM model by extracting features that represent RFM aspects of home appliances. Customers with similar RFM-oriented features are assigned to the same clusters, while customers with non-similar RFM-oriented features are assigned to different clusters. In the experiments, clustering achieved the determined threshold for Silhouette Score. The resulting clusters were ranked and named by Customer Lifetime Value (CLV) metric, which measures how valuable a customer is to the business.

Keywords

References

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Details

Primary Language

English

Subjects

Engineering

Journal Section

Research Article

Early Pub Date

May 12, 2023

Publication Date

May 15, 2023

Submission Date

October 3, 2022

Acceptance Date

November 24, 2022

Published in Issue

Year 2023 Volume: 25 Number: 74

APA
Aslantaş, G., Gençgül, M., Rumelli, M., Özsaraç, M., & Bakırlı, G. (2023). Customer Segmentation Using K-Means Clustering Algorithm and RFM Model. Dokuz Eylül Üniversitesi Mühendislik Fakültesi Fen Ve Mühendislik Dergisi, 25(74), 491-503. https://doi.org/10.21205/deufmd.2023257418
AMA
1.Aslantaş G, Gençgül M, Rumelli M, Özsaraç M, Bakırlı G. Customer Segmentation Using K-Means Clustering Algorithm and RFM Model. DEUFMD. 2023;25(74):491-503. doi:10.21205/deufmd.2023257418
Chicago
Aslantaş, Gözde, Mustafacan Gençgül, Merve Rumelli, Mustafa Özsaraç, and Gözde Bakırlı. 2023. “Customer Segmentation Using K-Means Clustering Algorithm and RFM Model”. Dokuz Eylül Üniversitesi Mühendislik Fakültesi Fen Ve Mühendislik Dergisi 25 (74): 491-503. https://doi.org/10.21205/deufmd.2023257418.
EndNote
Aslantaş G, Gençgül M, Rumelli M, Özsaraç M, Bakırlı G (May 1, 2023) Customer Segmentation Using K-Means Clustering Algorithm and RFM Model. Dokuz Eylül Üniversitesi Mühendislik Fakültesi Fen ve Mühendislik Dergisi 25 74 491–503.
IEEE
[1]G. Aslantaş, M. Gençgül, M. Rumelli, M. Özsaraç, and G. Bakırlı, “Customer Segmentation Using K-Means Clustering Algorithm and RFM Model”, DEUFMD, vol. 25, no. 74, pp. 491–503, May 2023, doi: 10.21205/deufmd.2023257418.
ISNAD
Aslantaş, Gözde - Gençgül, Mustafacan - Rumelli, Merve - Özsaraç, Mustafa - Bakırlı, Gözde. “Customer Segmentation Using K-Means Clustering Algorithm and RFM Model”. Dokuz Eylül Üniversitesi Mühendislik Fakültesi Fen ve Mühendislik Dergisi 25/74 (May 1, 2023): 491-503. https://doi.org/10.21205/deufmd.2023257418.
JAMA
1.Aslantaş G, Gençgül M, Rumelli M, Özsaraç M, Bakırlı G. Customer Segmentation Using K-Means Clustering Algorithm and RFM Model. DEUFMD. 2023;25:491–503.
MLA
Aslantaş, Gözde, et al. “Customer Segmentation Using K-Means Clustering Algorithm and RFM Model”. Dokuz Eylül Üniversitesi Mühendislik Fakültesi Fen Ve Mühendislik Dergisi, vol. 25, no. 74, May 2023, pp. 491-03, doi:10.21205/deufmd.2023257418.
Vancouver
1.Gözde Aslantaş, Mustafacan Gençgül, Merve Rumelli, Mustafa Özsaraç, Gözde Bakırlı. Customer Segmentation Using K-Means Clustering Algorithm and RFM Model. DEUFMD. 2023 May 1;25(74):491-503. doi:10.21205/deufmd.2023257418

Cited By

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