An RFM analysis is a
A)way of analyzing and ranking customers according to their purchasing patterns.
B)way of analyzing a customers most recent purchases.
C)way of recording a customers most recent purchases.
D)way of recording an individual customers spending habits.
E)data -mining system.

Question

Quizplus · Accepted Answer

An RFM (Recency, Frequency, Monetary) analysis is a way of analyzing and ranking customers based on their purchasing patterns, including how recently they made a purchase (Recency), how often they make purchases (Frequency), and how much they spend (Monetary). It helps businesses better understand their customers and target their marketing efforts more effectively.

An RFM Analysis Is a