Which of the following statements is true about RFM analysis?
A) It ranks customers based on their purchasing power.
B) It uses more than a single attribute to sort the customers.
C) It uses unsorted data to produce an RFM score.
D) It identifies groups of entities that have similar characteristics.

Question

Quizplus · Accepted Answer

RFM analysis uses three attributes (Recency, Frequency, and Monetary value) to sort and rank customers, making it a multi-attribute approach to understanding customer value.

Which of the Following Statements Is True About RFM Analysis