Performing RFM Analysis and Segmentation

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RFM Analysis and Segmentation is a customer segmentation technique that uses Recency, Frequency, and Monetary value to divide customers into different segments based on their buying behavior. RFM Analysis helps businesses to understand their customer base and to identify their most valuable customers. Segmentation, on the other hand, is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. By combining RFM Analysis and Segmentation, businesses can gain a deeper understanding of their customers and target their marketing efforts more effectively.


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