The RFM analysis is a marketing technique for analyzing customers.
RFM is clustering customers based on 3 aspects:
-
R for Recency: When was the customer last purchase?
You take the last order date from the hole data and add one day.
Then you can calculate the Duration since the last purchase for each customer. -
F for Frequency:
How often did the customer make an order during the analysis periode? -
M for Monetary:
How much did the customer spent?
For further Information you can read this artikel
The source of the used data is on kaggle.
The Data is also included in this Repo.
The data includes 3 csv files:
- List of Orders
This dataset contains purchase information. The information includes ID, Date of Purchase and customer details - Order Details
This dataset contains order ID, with the order price, quantity,profit, category and subcategory of product - Sales target
This dataset contains sales target amount and date for each product category