Fuzzy RFM Analysis in Car Rental Sector

OpenAlex · English

Recency, Frequency, Monetary (RFM) technique is a common and useful way for customer segmentation analysis, which is a must in sales, marketing, and operation management.RFM mainly uses transaction data to investigate customer's shopping behaviour.This study applied a fuzzy-based RFM method that uses renting data from a car rental company.First, data were extracted from the database and were transformed to R, F, and M parameters.Second, R, F, and M parameters were normalized and converted to fuzzy numbers.A fuzzy c -means FCM clustering algorithm was applied to transform fuzzy R, F, and M numbers to make groups for customers.As a result, some customers were regarded as regular customers, where as others could be divided into wintertime and summertime customers.Managers in the company could make better decisions and offer more relevant promotions for specific customer groups.