Customer Profitability Segmentation for SMEs Case Study: Network Equipment Company

Abstract

It is important to segment the most profitable customers of a company. Many CRM researchers have been performed to calculate customer profitability and develop a comprehensive model of it. This paper with the aid of data mining tools tries to customer segmentation based on kind of RFM. Customers are clustered using K-means and finally calculated CLV. This approach is essential for an SME to be able to provide a personalized service to each customer and to reach customer satisfaction.