RFM Analysis

• RFM (Recency, Frequency, Monetary) analysis is a proven marketing model for behaviour based customer segmentation.
• It groups customers based on their transaction history in other terms– how recently (R), how often (F) and how much (M) did they buy.
• RFM helps divide customers into various categories or in better terms into clusters to identify customers who are more likely to respond to a promotion or not... so we try to predict the next purchases of the customers