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Recency, Frequency, Monetary

  • What is the basis of RFM
  • In layman’s term what does RFM do
  • Why do we need to group customer?
  • Why do we need three axis to judge a customer
  • What are the things that we need to calculate a RFM score

  • Calculate the RFM score for the following data

    | CID | Recency | Frequency | Monetary | |—–|———|———–|———-| | A | 15 | 5 | 5000 | | B | 1 | 8 | 1000 | | C | 1 | 1 | 4566 | | E | 16 | 20 | 3000 |
    • What are the other versions of RFM