RFM (Recency, Frequency, Monetary) Analysis

RFM (Recency, Frequency, Monetary) Analysis is a marketing technique used to evaluate customer behavior. It considers three key factors: 1. **Recency** - How recently a customer made a purchase, indicating their current interest. 2. **Frequency** - How often a customer buys, reflecting their loyalty. 3. **Monetary** - How much money a customer spends, showing their overall value. By analyzing these factors, businesses can segment customers to tailor marketing strategies, improve retention, and boost sales, ultimately creating a more effective approach to engaging with different customer groups.