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RFM-Analysis-Online-Retail

Business Understanding

  • Problem : Only have basic customer data but want to know customer behaviour to plan marketing strategy accordingly

  • Question : How to understand customer behaviour to plan marketing strategy accordingly?

  • Measure : A well clustered customer basen on basic data that we have.

Data Understanding

1

Data Cleaning and Preparation

2

Exploratory Data Analysis

  • 80% hasil penjualan berasal dari pelanggan negara United Kingdom

3

  • Top 10 Customer with Highest Spending (Monetary Value)

4

  • Top 10 Items Contribute to Overall Sales

5

  • Top 10 Items Sold

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Data Modelling

  • Clustering based on:

R (Recency): Number of Days since Last Purchase

7

F (Frequency): Number of Tracsactions

8

M (Monetary): Total Amount of Transactions

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Conclusion

    1. Core - Your Best Customers

RFM Score : 222

Who They Are : Highly engaged customers who have bought the most recent, the most often, and generated the most revenue.

10

    1. Loyal - Your Most Loyal Customers

RFM Score : X2X

Who They Are : Customers who buy the most often from your store.

11

Most Loyal Customer by CustormerID

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Most Loyal Customer by Membership

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    1. Whales - Your Highest Paying Customers

RFM Score : XX2

Who They Are : Customers who have generated the most revenue for your store.

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Most Loyal Customer by CustormerID

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Most Loyal Customer by Membership

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    1. Rookies - Your Newest Customers

RFM Score : 20X

Who They Are : First time buyers on your site.

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Most Loyal Customer by CustormerID

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Most Loyal Customer by Membership

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    1. Slipping - Once Loyal, Now Gone

RFM Score : 00X

Who They Are : Great past customers who haven't bought in awhile.

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Most Loyal Customer by CustormerID

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Most Loyal Customer by Membership

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    1. Regular - The customers having common behaviour across these metrics.

RFM Score: Remaining Scores

Who They Are: Customer who have average metrics across each RFM scores.

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Most Loyal Customer by CustormerID

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Most Loyal Customer by Membership

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    1. RFM Segments

26

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