Which of the following is the first step in the process of producing an RFM score?
A) dividing the customers according to the amount spent on purchases
B) sorting customer purchase records based on the purchase frequency
C) sorting customer purchase records by the date of most recent purchase
D) dividing customers into multiple groups and giving each group a score

Question

Quizplus · Accepted Answer

The first step in the RFM (recency, frequency, monetary) scoring process is to sort the customer purchase records by the date of the most recent purchase. This helps identify which customers are most recent and likely to make additional purchases. After sorting by recency, the next step is to sort by frequency of purchases and then by monetary value of purchases. Only then are customers divided into groups and assigned a score based on their RFM values.

Which of the Following Is the First Step in the Process