A Methodology Based on RFM Using Data Mining Approach to Assess the Customer Loyalty

This study has proposed a new procedure, based on expanded RFM model, determining weight of parameters with pair-wise comparison matrix, clustering the products with K-optimum according to Davies- Bouldin Index, and then classifying customer product loyalty under B2B concept. It is necessary for firms to understand the customers and predict their needs for more success in business. The developed methodology has been implemented in SAPCO Co. The result shows a tremendous capability to the firm to assess the customer loyalty in marketing strategy designed by this company in comparing with random selection commonly used by most companies in Iran.