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- Python code using RFM model to segment customers
- You can use it to perform RFM anlaysis to segment customers based on their purchase history
- This is a part of a project I'm working on for a research group @ U of Chicago
* What is RFM analysis?
- RFM (Recency, Frequency, Monetary) analysis is a proven marketing model for behavior based customer segmentation. It groups customers based on their transaction history – how recently, how often and how much did they buy.
- Please read details about RFM model here: https://www.putler.com/rfm-analysis/
* What data would you need to perform RFM analysis using this Python code?
- Recency: days since last purchase
- Frequency: times of transactions per customer
- Monetary: toal money spent per cusotmer
* What are the input and output of this Python code?
- Input: a csv order file containing each order's purchase day and value per customer
- Output:
- Top 10 cusotmers sort by RFM score and monetary
- a csv file returing RFM score and relevant metrics per customer