New approach based on proximity/remoteness measurement for customer classification

Customer recognition provides an opportunity to the customers to think about services in service companies. Classifying customers into different categories based on their satisfaction helps these insurance companies to better manage their capital that results in more profit. Researchers have used different categorization methods to identify and classify customers based on their level of satisfaction with services. The purpose of this article is to present a new method for customer classification based on the satisfaction with services in the insurance company. It overcomes the inefficiencies of a classification method called Selectability/Rejectability Measures Approach for nominal classification and provides more accurate results. This method uses service quality criteria to better consideration of customers’ perceptions and expectations. Finally, a numerical example is provided to justify the proposed method. The input data is obtained from a survey in which 384 complete questionnaires collected from the customers are examined.