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 two groups based on the gender and giving each group a score

Question

Quizplus · Accepted Answer

The first step in the process of producing an RFM score is to sort customer purchase records by the date of most recent purchase. RFM stands for Recency, Frequency, and Monetary value, and the most recent purchase is the most important factor in calculating the recency score. Only after sorting by recency can the frequency and monetary value scores be calculated. Dividing customers by amount spent or gender is not relevant to the RFM scoring process.

Which of the Following Is the First Step in the Process