RFM Segmentation Analysis is a data-driven customer segmentation technique used by businesses to understand and categorize their customers based on their past purchasing behavior.
The primary objective of RFM analysis is to efficiently identify and target distinct customer segments for marketing campaigns, aiming to retain valuable customers, engage existing ones, and re-engage those who have left.
This technique relies on three important components: Recency (days since the last transaction), Frequency (total number of transactions), and Monetary Value (total amount spent).
In this Tutorial you will be able to learn the principles of RFM analysis and explore an RFM analysis dashboard from a real-world business.
No prior experience is required. All you need is a computer or a tablet.
|RFM, Customer Segmentation
|Managers, Senior Marketers, Emerging Marketers & Analysts, Senor BI Analysts
|Repeat Retail, Subscription Based
|Data Provided By
|A Restaurant Chain (Anonymous Provider)
|1 | No technical knowledge needed — Use the Browser or Spreadsheets
|CRM - Google BigQuery - Looker Studio
To get the most out of the Tutorial, follow these steps:
If you are unfamiliar with RFM Segmentation analysis concepts, or if you want to refresh your memory, start the mini-course.
Explore the Dashboard, read side-notes, play with the filters, and draw conclusions.
Remember, it's all about learning, exploring, and getting ideas!
Understanding RFM is the foundation for implementing any advanced customer segmentation or behavioral prediction model. The idea and the execution are excellent. Looking forward to seeing what is coming next!
Really loved the idea, both the real-world application and the illustrations! The real-world example made RFM analysis easy to understand. Super helpful for someone like me who learns better with practical stuff. Can't wait for more tutorials like this – simple, clear, and straight to the point. Great job!
What a great practical resource for understanding RFM and how it is used (I bookmarked it). Even though RFM is a very classic segmentation method, many of our customers often struggle to understand the basics or why this is important. I am looking forward to the release of Templates and SQL Builder to see the magic behind RFM and RFM Historical implementation.
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