Predicting Customer Behavior using CRM: RFM Analysis and Data Mining

Mahsa Akbari¹ Mostafa Bigdeli²

1) Department of Industrial Management, Faculty of Management and Accounting, Islamic Azad University, Karaj Branch
2) Department of Industrial Management, Faculty of Management and Accounting, Islamic Azad University, Karaj Branch

Publication : International Conference on Marketing and Design (Intersections & Challenges) 2018 (icmdafamevents.ir)
Abstract :
Having a lucrative interaction between companies and clients is a laborious task in the competitive and globalized environment. Customer Relationships Management (CRM) is a good approach which helps the organizations to focus on the bilateral relationships of organizations and clients so as to identify the customers’ needs and demands. In other words, rather than focusing on different types of clients in order to make suitable interactions, having an appropriate CRM system plays crucial role in any organization. However, in order to have an efficient CRM system you might collect accurate data through Data Mining. Data mining is a process which supports organizations to collect and organized information regarding their clients and their needs.As reason that accessing the relevant information is on the top priority; RFM (Regency, Frequency and Monetary) analytic program is a useful analysis to recognize consumer behavior. Therefore, the aim of this study is to scrutinize the role of RFM analysis along with back propagation neural network (BPN) to predict sales volume in different industries. Furthermore, this article is an attempt to offer a model based on Data mining, RFM analysis and prediction in order to predict customer future plan which can increase the effectiveness of CRM.The novelty point of this study is the combination of neural networks and RFM on prediction of CRM system which provides considerable hints with many practical implications for future studies. Furthermore, a model had been offered based on the proposed view so as to specify the CRM, RFM analysis and Data mining correlation in predicting customer behavior which results in enhancing organizations’ effective Performance and Flexibility.
Keywords : Customer Relationships Management (CRM) Data Mining Customers Behavior Regency Frequency Monetary (RFM)