BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is RFM (recency, frequency, monetary) 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 to identify the best customers and perform targeted marketing campaigns.

Detailed explanation-2: -Recency, frequency, monetary value (RFM) is a marketing analysis tool used to identify a firm’s best clients based on the nature of their spending habits.

Detailed explanation-3: -RFM is a strategy for analyzing and estimating the value of a customer, based on three data points: Recency (How recently did the customer make a purchase?), Frequency (How often do they purchase), and Monetary Value (How much do they spend?). Recency: How recently did the customer make a purchase?

Detailed explanation-4: -RFM analysis is a data driven customer behavior segmentation technique. RFM stands for recency, frequency, and monetary value. The idea is to segment customers based on when their last purchase was, how often they’ve purchased in the past, and how much they’ve spent overall.

Detailed explanation-5: -RFM uses sales data to segment a pool of customers based on their purchasing behavior. The resulting customer segments are neatly ordered from most valuable to least valuable. This makes it straightforward to identify best customers.