An RFM Model Customizable to Product Catalogues and Marketing Criteria Using Fuzzy Linguistic Models: Case Study of a Retail Business

In the field of strategic marketing, recency, frequency and monetary (RFM) variables model has been applied for years to determine how solid a database is in terms spending customer activity. Retailers almost never obtain data related their customers beyond purchase history, if they do, information often out date. This work presents new method, based on fuzzy linguistic 2-tuple definition product hierarchies, which provides interpretability giving business meaning improving precision conventional models. The RFM model, adapted by hierarchy thanks analytical hierarchical process (AHP), revealed be useful tool including criteria, catalogues insights commercial strategies. result our method complete segmentation that enriches clusters obtained with traditional offers clear view customers’ preferences possible actions define cross- up-selling A real case study worldwide leader home decoration was developed guide, step step, other researchers marketers. built using only retailers always have: ticket details.