Proposing a Model for Customer Segmentation using WRFM Analysis (Case Study: an ISP Company)

Customer lifetime value (CLV) provides a tool for managers to segment their customers in order to offer better services and implement proper strategies to each segment. RFM is a widely-used model for determination of customer lifetime value. This study classifies customers of an ISP using RFM model and allocates weights to variables using AHP and K-means methods. Given the special condition of the studied industry, using the time value of money is an improvement utilized in this study to evaluate the clients payments better. This paper helps active internet service providers segment their customers in order to provide proper services and develop better marketing strategies for each class aimed at gaining more profit.