Discussion :: Database Processing for BIS - General Questions (Q.No.20)
|Rahul Ambardekar said: (Oct 23, 2010)|
|RFM stands for
* Recency - How recently a customer has purchased?
* Frequency - How often he purchases?
* Monetary Value - How much does he spend?
thus 115 indicates
Spent less amt
|Indurajan said: (Apr 5, 2014)|
|RFM ratings have become an important tool. Using RFM analysis, customers are assigned a ranking number of 1, 2, 3, 4, or 5 (with 5 being highest) for each RFM parameter. The three scores together are referred to as an RFM "cell". The database is sorted to determine which customers were "the best customers" in the past, with a cell ranking of "555" being ideal.|
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