Tasks
- Introducion about CRM& RFM analysis
- Business Problem
- Datasets story and variables
- Data prep.
- Calculate RFM metrics
- Create RFM score and segmentation
- Visualization
- Customer Strategy
CRM analytics tries to make this process efficient by analyzing the relationships that companies have with their customers or potential customers with data sets One of the most used analyses in CRM analytics is RFM analysis. The purpose of RFM analysis is to segment the customer, divides customers into specific groups and The firm develops strategies specific to these groups. RFM has 3 metrics:
- Recency: It shows when customers last received service from the firm.
- Frequency: It shows how often the customers receives service from the firm.
- Monetary : It shows how much money the customer spends on the service received from the company. RFM score based on these three metrics(555:champions)
Data analysts working in the CRM department of a retail company of foreign origin will segment their customers by using the data of the customers and send their analysis to the marketing and sales department. According to these analyses, the company wants to prepare unique campaigns for its loyal customers and wants to develop a strategy against its customers who are at risk of losing.
The dataset named Online Retail II includes online sales transactions of a UK-based retail company between 01/12/2010 and 09/12/2011.
- Variables
- InvoiceNo
- StockCode
- Description
- Quantity
- InvoiceDate
- UnitPrice
- Customer ID
- Country