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

Question

Quizplus · Accepted Answer

RFM analysis stands for "Recency, Frequency, Monetary," which refers to three factors that are used to analyze and rank customers according to their purchasing patterns. Recency describes how recently a customer has made a purchase, frequency describes how often a customer makes purchases, and monetary describes how much a customer spends on purchases. This analysis is used to identify high-value customers and to target marketing efforts more effectively.

An RFM Analysis Is a