Developing RFM Model for Customer Segmentation in Retail Industry

Many of the research tools used by sophisticated consumer marketing companies for new product development fall into the broad category referred to as 'market segmentation.' Recently some of these segmentation techniques have come under considerable fire. In this article we will design a mathematical model for the segmentation of retail customers. In this paper, we have segmented them based on recency, frequency and monetary (RFM) measures. Data required applying this method gathered from all the Retail Stores of Odisha which is established newly