Can Be Self-employed Full-time

[sadiaseo12912]

When upselling, potential buyers receive recommendations for more expensive product versions of the originally intended product. 4. Occasional customers This group purchases rarely and with medium to low timeliness, but generates medium to high sales. There is also potential for cross-selling and up-selling in this group. 5. Customers at risk This group seldom buys , but sometimes generates high sales.

This group is characterized by a low timeliness and frequency and generates medium to very low sales. 7. Lost customers This group has a very low recency and C Level Contact List frequency, but has purchased across all sales categories in the past. Example RFM analysis The following tables show how you can apply RFM analysis and carry out customer segmentation: 1. Recency First, rank customers based on the recentness of their purchases.



Here you specify how many days ago the last purchase was made and assign an R-Score to it using quantiles. CUSTOMER NUMBER RECENCY RANK R SCORE 100 Advantages and disadvantages of RFM analysis There are various advantages and disadvantages associated with an RFM analysis: Advantages There are many advantages associated with RFM analysis. It is easy to implement and can be applied to various business models, from e-commerce to subscription models.