RFM Analysis - Recency, Frequency and Monetary value based customer segmentation.

RFM analysis is a customer segmentation technique that categorizes customers based on their recency, frequency, and monetary value of past purchases. It helps businesses understand customer behavior and tailor marketing strategies for increased engagement and loyalty. Recency: How recently a customer made a purchase. Frequency: How often a customer makes purchases. Monetary Value: How much a customer spends on average How it helps businesses: Targeted marketing: Allows businesses to tailor their marketing messages and offers to different customer segments. Customer segmentation: Provides a way to group customers based on their buying behavior, leading to more effective marketing strategies. Improved customer retention: Helps businesses identify at-risk customers and implement strategies to retain them. Increased sales: By understanding customer behavior, businesses can create more relevant marketing campaigns and increase sales. RFM Analysis - Recency, Frequency and Monetary value based customer segmentation with detailed MS Excel workings