Proceedings of the 3rd International Conference on Economy, Management and Entrepreneurship (ICOEME 2020)

Rental Customer Segmentation Based on Length, Recency, Frequency, Average-Monetary and Satisfaction Value Model and Cluster Analysis

Authors
Fu Tao, Xindi Wang
Corresponding Author
Fu Tao
Available Online 8 September 2020.
DOI
https://doi.org/10.2991/aebmr.k.200908.057How to use a DOI?
Keywords
renting customers, customer segmentation, LRFAS model, K-means clustering
Abstract

As the rental market continues to grow, it is increasingly important to subdivide rental customers and formulate targeted marketing management strategies. Aiming at the characteristics of large number of renting customers, long period, and large potential value, a length, recency, frequency, average-monetary and satisfaction value (LRFAS) model of customer segmentation based on recency, frequency and monetary value improvement is proposed. On this basis, the K-means clustering algorithm is used to subdivide customers, and the entropy weight method is used to determine the weight of each indicator, and the obtained indicator weight is used to calculate the value of the customer. An example of an intermediary company was used to verify the feasibility and effectiveness of the improved model in the field of housing leasing. The results show that the improved length, recency, frequency, average-monetary and satisfaction value model can more effectively and accurately segment rental customers, and at the same time formulate corresponding marketing strategies for different types of customer needs, helping intermediary companies to gain great core competitiveness in the market.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd International Conference on Economy, Management and Entrepreneurship (ICOEME 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
8 September 2020
ISBN
978-94-6239-052-2
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200908.057How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Fu Tao
AU  - Xindi Wang
PY  - 2020
DA  - 2020/09/08
TI  - Rental Customer Segmentation Based on Length, Recency, Frequency, Average-Monetary and Satisfaction Value Model and Cluster Analysis
BT  - Proceedings of the 3rd International Conference on Economy, Management and Entrepreneurship (ICOEME 2020)
PB  - Atlantis Press
SP  - 346
EP  - 350
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200908.057
DO  - https://doi.org/10.2991/aebmr.k.200908.057
ID  - Tao2020
ER  -