RFM Analysis BI
This BI provides analysis of segments based on frequency and amount spent. The more frequent customers tend to have a significantly better response and average spend than those who have shopped less recently or less frequently. This indicates customers that are high spender and frequent shoppers are premium segments, vs. low spender and infrequent shopper are uncommitted customers. Figure 5-36 shows how the premium customer segment is in the top right corner, the potential customer segments are close to the center, and the uncommitted shoppers are in the bottom left quadrant. This helps in planning how potential and uncommitted customers can be attracted by certain offers and how existing committed customers can be satisfied.
