Customer Insights – Segmentation and RFM
As we venture deeper into the complexities of marketing analytics, we now focus on a critical yet frequently evolving concept: customer dynamics. In this chapter, we seek to accomplish several learning objectives to solidify your understanding and practical application of this essential facet of marketing analytics.
We will dig deeper into the role of specific analytic tools in managing customer dynamics: segmentation and Recency, Frequency, and Monetary Value (RFM) analysis. These tools provide a mathematical and statistical framework to analyze, predict, and influence customer behavior. Our discussion will cover how these tools work and their implications in the broader context of marketing analytics, using Python to illustrate their application.
We aim to explain the benefits and business potential of RFM and segmentation as instrumental...
