RFM

RFM Segmentation is one of the widely used segmentation techniques for the business oriented design.

OptiSegment is a flexible segmentation engine with multi purpose deployments. A general view of OptiSegment RFM segmentation holds 3 major components:

• Object
• Subject
• Relation

The above trilogy can hold and combination like:

• Customer, Product, Sales
• Vehicle, Parts, Maintanance
• Student, Course, Registers

In general, all segmentation problems can be divided into sub segmentation problems as indicated above trilogy.

The subject and object are expected to have an id and name for each record. Optionally the categoric or numeric details for each subject and object can be added. The relation is holding the date, some numerical details and Subject ID, Object ID together.

Example Use Cases:

Use Case 1 : Customer Segmentation

For customer segmentation, lets assume a customer buys some products. The trilogy will be similar to :

• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Product : ID, Name, Some Optional Categoric Details (like product details, category, image etc.) , Some Optional Numeric Details (like size, weight, unit cost etc.): This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Customer ID in this use case), OID (Object ID, which is product ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 2: Student Segmentation

For student segmentation, lets assume a student registers some online courses. The trilogy will be similar to :

• Student : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like gpa, income, age etc.) : This is the Subject in OptiSegment Trilogy
• Course : ID, Name, Some Optional Categoric Details (like course details, instructor, course location etc.) , Some Optional Numeric Details (like course length, number of registered students, unit cost etc.): This is the Object in OptiSegment Trilogy
• Register : ID, Name (might be the registrar name, register location, category etc.), SID (subject ID, which is Student ID in this use case), OID (Object ID, which is course ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 3: Product Segmentation

For product segmentation, lets assume a customer buys some products. The trilogy will be similar to :

• Product : ID, Name, Some Optional Categoric Details (like product details, category, image etc.) , Some Optional Numeric Details (like size, weight, unit cost etc.): This is the Subject in OptiSegment Trilogy
• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Product ID in this use case), OID (Object ID, which is Customer ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 4: Campaign Segmentation

For campaign segmentation, lets assume a customer buys some campaigns. The trilogy will be similar to :

• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Campaign : ID, Name, Some Optional Categoric Details (like campaign details, category, image etc.) , Some Optional Numeric Details (like length of campaign, budget, number of interaction etc.): This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Customer ID in this use case), OID (Object ID, which is product ID in this use case), Date of Campaign Sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 5: Sales Point / Branches Segmentation

For Sales Point/ Branch segmentation, lets assume a customer buys from a branch. The trilogy will be similar to :

• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Branch : ID, Name, Some Optional Categoric Details (like branch details, category, location (city, country) etc.) , Some Optional Numeric Details (like size, net worth etc.): This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Customer ID in this use case), OID (Object ID, which is Branch  ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 6: Dealer / Distributor Segmentation

For student segmentation, lets assume a customer buys some products. The trilogy will be similar to :

• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Product : ID, Name, Some Optional Categoric Details (like product details, category, image etc.) , Some Optional Numeric Details (like size, weight, unit cost etc.): This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Customer ID in this use case), OID (Object ID, which is product ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 7: Movie Segmentation

For movie segmentation, lets assume a customer buys a movie. The trilogy will be similar to :

• Customer : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Movie : ID, Name, Some Optional Categoric Details (like movie details, category, image etc.) , Some Optional Numeric Details (like length, unit price etc.): This is the Object in OptiSegment Trilogy
• Sales : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Customer ID in this use case), OID (Object ID, which is Movie ID in this use case), Date of sell, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

Use Case 8: Text / Document Segmentation

For student segmentation, lets assume a reader reads a text. The trilogy will be similar to :

• Reader : ID, Name, Some Optional Categoric Details (like address, telephone, email etc.) , Some Optional Numeric Details (like net income, age etc.) : This is the Subject in OptiSegment Trilogy
• Text: ID, Name, Some Optional Categoric Details (like text details, category, author etc.) , Some Optional Numeric Details (like size, number of readers etc.): This is the Object in OptiSegment Trilogy
• Read : ID, Name (might be the seller name, selling branch, category etc.), SID (subject ID, which is Reader ID in this use case), OID (Object ID, which is Text ID in this use case), Date of read, Detailed numeric columns (like quantitty, sales price, discount , tax rate etc.)

From above use cases, it is obvious that the OptiSegment Trilogy can be applied into any segmentation problem. Or some complex segmentation problems can be reduced to OptiSegment Trilogy. For example, a company in retail industry, wants to create segments from the sales data. From the sales data, Customer Segmentation, Product Segmentation and Branch Segmentation or even the Campaign Segmentation can be created, if the data holds campaign details. The only thing to do with OptiSegment RFM analysis is reduction to OptiSegment trilogies from the same data.