Clustering customer groups to find the characteristics of the best one (most transactions, recently transaction time, and largest transaction value) and take useful insights



Customer Clustering With RFM Model

RFM is a method used for analyzing customer value. It is commonly used in database marketing and direct marketing and has received particular attention in the retail and professional services industries.

RFM stands for the three dimensions:

Recency: How recently did the customer purchase?

Frequency: How often do they purchase?

Monetary Value: How much do they spend?

