Customer Segmentation Engine (RFM Analysis)

Build an advanced customer segmentation system using Recency, Frequency, and Monetary analysis

ProgressSection 1 of 6

Section 1: Introduction to RFM

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EXPLAIN: Understanding the Concept

🎯 What is RFM Analysis?

RFM is a powerful customer segmentation method used by marketing teams:

Recency: How recently did they purchase?
Frequency: How often do they purchase?
Monetary: How much do they spend?

Each gets scored 1-5, then combined to segment customers into groups like "Champions", "Loyal Customers", "At Risk", etc.

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SHOW: Here's How It Works

👀 RFM Example

Customer: Alice
  Recency: 5 days ago (Score: 5 - recent!)
  Frequency: 12 purchases (Score: 5 - frequent!)
  Monetary: $2,500 total (Score: 5 - high value!)
  RFM Score: 555 → "CHAMPION"

Customer: Bob
  Recency: 180 days ago (Score: 1 - dormant!)
  Frequency: 2 purchases (Score: 2 - infrequent)
  Monetary: $150 total (Score: 1 - low value)
  RFM Score: 121 → "LOST"

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PRACTICE: Now You Build It!

✍️ Your Turn: Explore RFM Data

Review the customer data structure for RFM analysis!

Code Editor

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💻 Output:

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