EjSBS - The European Journal of Social & Behavioural Sciences

The European Journal of Social & Behavioural Sciences

Online ISSN: 2301-2218
European Publisher

Customer Segmentation With Machine Learning for Online Retail Industry

Table 3: Customer Segments with Business View

No Recency Frequency Revenue Customer Strategy
1 Low Low Low Inactive Rare Low Spender Ignore
2 Low Low Mid Inactive Rare Mid Spender Ignore
3 Low Low High Inactive Rare High Spender Stimulate
4 Low High Low Inactive Frequent Low Spender Stimulate
5 Low High Mid Inactive Frequent Mid Spender Stimulate
6 Low High High Inactive Frequent High Spender Stimulate
7 High Low Low Active Rare Low Spender New Customers with low potential-Ignore
8 High Low Mid Active Rare Mid Spender New Customers who can become Silver or Gold, take care, welcome promotion
9 High Low High Active Rare High Spender New Customers, potential to become Gold or Platinum, focus to retain, welcome promotion
10 High High Low Active Frequent Low Spender Loyal customers with low value, Silver, Reward
11 High High Mid Active Frequent Mid Spender Loyal customers with mid value, Gold, Reward
12 High High High Active Frequent High Spender Loyal customers with high value, Platinum, Reward
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