Using RFM model to help mobile phone dealer to find their target customers in China

Abstract

Target customer positioning is the first step for enterprises to develop market strategy. After the completion of user positioning, through the analysis of specific groups, we can accurately know the consumption habits and thinking process of users, which will bring great help to the precision marketing of businesses and reduce operating costs. This paper focuses on using RFM model to help Chinese mobile phone dealer to find their target customers and create a portrait of the target consumers. This paper analyses 263352 different customers with 10 different brands and discusses the valuable cell phone consumers. The result shows Guangdong, Shanghai and Beijing have the highest sales, volume, and number of customers. The top five mobile phone sales are Samsung, Apple, Xiaomi, Huawei and OPPO, among which Samsung accounts for more than half of the share, and Apple accounts for about a quarter. The analysis found that the purchase of Samsung and Apple phones by all age groups and by men and women was relatively average. It was also found that Guangdong, Shanghai, and Beijing accounted for more than 50% of the sales. The percentage important value customers accounts for about 50% of the important customers, which is higher than the average percentage of other e-business products. Despite the sluggish sales figures, mobile e-commerce is still an industry with great potential.