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Posted: Wed Jan 29, 2025 4:08 am
It is also important to check whether the original data is accurate in the first place. If there are any deficiencies such as input errors or omissions, we recommend carrying out data cleansing to improve accuracy. 3. Rank your RFMs Let's rank the three indices to segment the collected customer data. Since purchase frequency and purchase amount vary depending on the product you handle, it is important to set it according to the characteristics of your company's products.
Example of RFM rank Rank Recency Frequency Monetary ghana telegram database Rank A Within 1 week 20 or more times Over 100,000 yen Rank B Within 1 month 15 or more times Over 80,000 yen Rank C Within 2 months 10 or more times Over 50,000 yen Rank D Within 6 months 5 or more times Over 20,000 yen Rank E More than half a year Less than 5 times Less than 20,000 yen By applying the customer data to the above table, it becomes clear which rank each customer belongs to.
There is no set rule for the number of ranks, but care should be taken because having too many ranks can actually reduce the accuracy of the analysis. In general, it is reasonable to divide customers into about 3 to 5 groups. 4. Define rank When customers are classified into 5 ranks as shown above, there are 125 ways (5 to the power of 3) for customers. However, 125 ways is too many, so you need to decide what each segment should be.
Example of RFM rank Rank Recency Frequency Monetary ghana telegram database Rank A Within 1 week 20 or more times Over 100,000 yen Rank B Within 1 month 15 or more times Over 80,000 yen Rank C Within 2 months 10 or more times Over 50,000 yen Rank D Within 6 months 5 or more times Over 20,000 yen Rank E More than half a year Less than 5 times Less than 20,000 yen By applying the customer data to the above table, it becomes clear which rank each customer belongs to.
There is no set rule for the number of ranks, but care should be taken because having too many ranks can actually reduce the accuracy of the analysis. In general, it is reasonable to divide customers into about 3 to 5 groups. 4. Define rank When customers are classified into 5 ranks as shown above, there are 125 ways (5 to the power of 3) for customers. However, 125 ways is too many, so you need to decide what each segment should be.