¹Tu Van Binh,²Ngo Giang Thy

¹University of Economics Ho Chi Minh City

²Nguyen Tat Thanh University

With the source of big data extracted from the S Bank, the sample of 3,527 customers with 130,000 transactions is employed in the study. Based on the RFM approach plus the mathematic method of K-means analysis taken into account, five market segments are found, such as: spender group (38.8%), shopper group (10.3%), frequent group (14.8%), uncertain group (27.5%), and best group (8.5%). The derived client segmentation is focused on transaction functionality. This finding contributes to the planning, on the basis of its transaction, of a system for segmenting customers to estimate the potential value of the various segments of customers in the bank, in particular for the retail banking sector. In addition, empirical research findings may provide feedback on marketing strategies, develop promotional programs to introduce new products for each category, and stimulate the most profitable consumer group's consumption.

Market segment, customer analytics, RFM, banking

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Volume 05 Issue 09 September 2022

There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.