In coding data using RFM analysis,a value of "5" for the "M" would indicate:
A) the group of customers who spent the most amount of money, on average, per transaction during a specific time period
B) the group of customers who have made the highest number of purchases within the a specific time period
C) the group of customers who spent the most amount of money, in total, during a specific time period
D) the group of customers who spent the most amount of money, on average, during a specific time period

Question

Quizplus · Accepted Answer

A value of "5" for the "M" in RFM analysis indicates the group of customers who spent the most amount of money, in total, during a specific time period. The "M" in RFM analysis refers to monetary value, so a higher score signifies a higher total amount spent by the customer. A score of "5" in this category indicates that these customers are the highest spenders overall.

In Coding Data Using RFM Analysis,a Value of "5" for the "M