/RFM_Customer_Segmentation_Analysis

RFM (Recency, Frequency, Monetary) analysis is a proven marketing model for behaviour based customer segmentation. It groups customers based on their transaction history in other terms– how recently (R), how often (F) and how much (M) did they buy.

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RFM Analysis

  • RFM (Recency, Frequency, Monetary) analysis is a proven marketing model for behaviour based customer segmentation.
  • It groups customers based on their transaction history in other terms– how recently (R), how often (F) and how much (M) did they buy.
  • RFM helps divide customers into various categories or in better terms into clusters to identify customers who are more likely to respond to a promotion or not... so we try to predict the next purchases of the customers