Prediction of the Customer Activity with Using the Improved Measure of Clumpiness

Capturing Competitive Usage and Early Churn under Limited Information

Abstract

In recent, the concept of clumpiness has received increasing attention as a novel method called RFMC in Customer Relationship Management (CRM). However, it has been not so long since clumpiness is proposed, there still remains difficulties. In this paper we firstly identify the problems of clumpiness in both statistical and practical fields, propose the improved indication of clumpiness and apply it to some of the most preferential problems for firms such as the detection of early churn in smartphone game market and the prediction of consumer's share-of-wallet (SOW) in grocery market to validate its usefulness in marketing analysis.