A(n)________ analysis is used to analyze and rank customers according to their purchasing patterns.
A) regression
B) cluster
C) RFM
D) market basket

Question

Quizplus · Accepted Answer

RFM analysis (recency, frequency, monetary) is used to analyze customers based on how recently they made a purchase, how frequently they make purchases, and how much money they spend. This helps businesses identify their most valuable customers and target them with personalized marketing messages. Regression analysis is a statistical technique used to analyze the relationship between variables, while cluster analysis is used to group similar customers together based on common characteristics. Market basket analysis is used to analyze which products are frequently purchased together.

A(n)________ Analysis Is Used to Analyze and Rank Customers According