RFM Analysis (Recency, Frequency, Monetary)

RFM Analysis is a marketing technique used to evaluate customer behavior based on three key factors: Recency, Frequency, and Monetary value. - **Recency** measures how recently a customer made a purchase, indicating their current engagement. - **Frequency** tracks how often a customer buys, showcasing loyalty. - **Monetary** assesses how much money the customer spends, highlighting their overall contribution. By analyzing these metrics, businesses can segment customers, tailor marketing efforts, and identify opportunities to increase sales and improve customer relationships, ultimately driving business growth.