Examining the purchasing habits of customers by calculating RFM metrics.
To group customers according to their purchasing behavior.
Segment these groups according to recency and frequency grid
RFM analysis is a model for segmenting customers based on three parameters that define their purchase habits. Three parameters are:
Recency: How recently a customer has made a purchase.
Frequency: How often a customer makes a purchase.
Monetary: How much money a customer spends on purchases.
online_retail_II.xlsx: The dataset includes the sales of a UK-based online store between 01/12/2009 - 09/12/2011. The product catalog of this company is mostly souvenirs. It can also be considered as promotional products.