RFM-Based customer segmentation as an elaborative analytical tool for enriching the creation of sales and trade marketing strategies

Abstract

In the current intensified competitive market, analyzing customers meticulously and implementing customer relationship management accordingly are the main reasons behind the success of breakthrough companies. One of the main constraints and deficiencies of sales and trade marketing departments in terms of sales development in FMCG (fast moving consumer goods) industry is that they don‘t know which customer segments to target and how to deal with each one. In this study we discuss how these departments can gather customer data and how they can analyze these data to gain useful customer insights. We provide an overview of customer segmentation based on RFM method and customer lifetime value (CLV). The results would be useful for sales, trade marketing and marketing decision-makings in all industries specially the active companies in FMCG industry.