The Application of Modified RFM-Analysis to Increase the Loyalty of Consumers of Industrial Rubber Articles

This research addresses a critical issue in the pharmaceutical industry – identifying loyal and consistent customers. Factors such as the need for stable product demand, reduced marketing expenditures, and expanding customer base underscore the significance of this task. Effective pharmaceutical enterprise management hinges on the accurate identification and retention of steadfast customers. The study highlights the complexities within the sector, necessitating targeted customer analysis approaches. It emphasizes the importance of tailored, innovative methods considering the industry's unique regulatory constraints and characteristics. Factor analysis of customer attributes revealed homogenous groups, leading to the development of strategies to enhance interactions and secure the company's market position.

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MRFM-analysis for customer segmentation in the industrial equipment market

Tsoy

Shchekoldin

2023

Upravlenets

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It is of high importance for enterprises to identify, group and prioritize customers with similar needs in order to develop an individual approach to each of these groups. The article aims to segment B2B consumers based on the analysis of their purchasing behaviour. The theoretical framework of the study is the postulates of behavioural marketing. The research method involves МRFM-analysis (Modified Recency-Frequency-Monetary Analysis) that allows determining homogeneous groups of clients, examining the evolution of their behaviour, and formulating targeted interaction strategies for each group. The paper demonstrates the benefits of the Orange Data Mining machine learning and data mining complex, these are the capability to statistically correctly identify client clusters and the visual clarity of results analysis. The empirical evidence is industrial equipment sales data provided by a large Russian security systems manufacturer for the period of 2015–2022. A relationship is found between the segmentation performed in the study and the Reinartz–Kumar approach applied to decide on a strategy for forming customer loyalty. The authors distinguish between six groups of customers and establish those generating the greatest profit for the company and those having the minimum effects on its turnover. The group of trading firms (about 20% of all the clients) turned out to be the priority one, which, due to the specificity of their activities, have long-term relationships with the manufacturer and high client reliability. It is the client group for which devising targeted strategies stimulating an increase in their demand is most reasonable. For the rest of the consumer groups, it is expedient to use standard marketing strategies.

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The Application of Modified RFM-Analysis to Increase the Loyalty of Consumers of Industrial Rubber Articles

Cited by 4 publications

References 1 publication

Methodology for Assessing the Competitiveness of Metal-Cutting Tools

Methodology for Assessing the Competitiveness of Metal-Cutting Tools

Identifying consumers of pharmaceutical products and developing their sustainable loyalty

MRFM-analysis for customer segmentation in the industrial equipment market

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