Evaluating Consumer Revenue Potential Using RFM Analytics in Therapeutic Goods Supply Networks
Dr. Priya Nair , Department of Information Technology Amrita Vishwa Vidyapeetham Coimbatore, IndiaAbstract
The increasing complexity of therapeutic goods supply networks, characterized by multi-tier distribution systems and heterogeneous consumer behavior, necessitates robust analytical frameworks for evaluating customer revenue potential. This study investigates the application of Recency–Frequency–Monetary (RFM) analytics as a strategic tool for assessing consumer value within pharmaceutical and healthcare product supply chains. Unlike traditional valuation approaches that rely on static financial indicators, RFM analytics provides a dynamic, behavior-driven perspective, enabling firms to identify high-value customers, predict future purchasing patterns, and optimize resource allocation.
This research develops an integrated analytical framework that combines RFM metrics with clustering techniques and data mining algorithms to evaluate consumer revenue potential. Drawing upon established methodologies in customer segmentation, fuzzy clustering, and behavioral analytics, the study synthesizes theoretical and empirical insights from prior research. The framework incorporates advanced computational techniques such as ISODATA clustering and model-based segmentation to improve classification accuracy and decision-making efficiency. Furthermore, the study contextualizes these methods within therapeutic goods supply networks, where regulatory constraints, demand variability, and product criticality significantly influence purchasing behavior.
The findings demonstrate that RFM-based segmentation enhances the identification of profitable customer segments and improves forecasting accuracy compared to traditional approaches. The integration of clustering algorithms further refines segmentation granularity, enabling firms to design targeted marketing strategies and optimize inventory planning. Additionally, the study highlights the role of data-driven decision-making in improving supply chain responsiveness and financial performance.
The research contributes to both academic literature and industry practice by providing a comprehensive framework for evaluating customer value in healthcare supply networks. It addresses critical gaps in existing studies by integrating behavioral analytics with supply chain considerations, offering actionable insights for managers. The study also identifies limitations related to data availability and model assumptions, suggesting directions for future research, including the incorporation of real-time analytics and artificial intelligence.
Keywords
Customer Lifetime Value, RFM Analytics, Therapeutic Supply Chain, Customer Segmentation, Behavioral Analytics, Data Mining, Clustering Algorithms, Healthcare Logistics
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