11-17-2023 17:46 PM
This week for Workout Wednesday we are performing RFM (recency, frequency and monetary value) analysis . RFM Analysis is a marketing technique used to quantitatively rank and group customers based on the recency, frequency and monetary total of their recent transactions.
A score of 1 to 5 is assigned for each of the three main factors. The collection of three scores for each customer is called an RFM cell. In a simple system, organizations average these values together, then sort customers from highest to lowest to find the most valuable customers. Some businesses, instead of simply averaging the three values, weigh the values differently.
Please enjoy this guest contribution from Andrei Khaidarov.
For more info, visit https://workout-wednesday.com/pbi-2023-w46/