The Recency, Frequency, and Monetary model, also known as the RFM model, is a popular
and widely used business model for determining beneficial client segments and analyzing
profit. It is also recommended and frequently used in superstores to identify customer
segments and increase profit margins. Later, the Length, Recency, Frequency, and
Monetary model, also known as the LRFM model, was introduced as an improved version of
the RFM model to identify more relevant and exact consumer groups for profit maximization …

In superstore business, the recency, frequency, and monetary (RFM) based on cus tomers'
purchase results is preferred to categorize valuable customers in order to increase profit
margins. This paper develops an enhanced RFM (recency, fre quency, monetary) and LRFM
(length, recency, frequency, monetary) model, namely LRFMV (length, recency, frequency,
monetary, and volume), and then clusters the data using the standard K-means, K-medoids
and Mini Batch K-means algorithms. The results obtained from the three algorithms are …