RFM-BASED CUSTOMERS CLUSTERING FOR PRECISE INDUSTRIAL MARKETING STRATEGY FORMULATION

Abstract

In the information age, digital marketing which covers data processing and spreading of digital information is an effective marketing strategy alternative. In industrial sector, marketing is one of the costly activities, therefore, it needs to be carried out accurately. This study discusses an accurate industrial marketing strategy formulation based on customers purchasing behaviour. Customer sales data were analysed by a well-known method, namely Recency, Frequency, and Monetary (RFM) combining with data analytics technique. Results indicated that data analytics could improve the preciseness of the conventional RFM by considering non-profit customers and provide real-time data. This research gives another insight on improving conventional RFM analysis effectiveness as a simple and widely used tool for marketers.