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Read: Using MIS Chapter 3 To Do: Suppose you run an e-commerce platform, and you want to segment your customers to better target your marketing
Read: Using MIS Chapter 3 To Do: Suppose you run an e-commerce platform, and you want to segment your customers to better target your marketing efforts. Here's a dataset of customer transactions: Let's perform RFM analysis: Recency (R): Calculate the number of days since each customer's last purchase and assign a score: Customer 1: Last purchase on 2023-09-25 (1 day ago) => High recency score. Customer 2: Last purchase on 2023-08-10 (46 days ago) => Customer 3: Last purchase on 2023-09-20 (6 days ago) => Customer 4: Last purchase on 2023-06-05 (112 days ago) => Customer 5: Last purchase on 2023-09-15 (11 days ago) => Frequency (F) : Count the number of purchases each customer made during the specified time period and assign scores: Monetary (M): Calculate the total spending for each customer and assign scores based on monetary value: Customer 1: >> Customer 2: Customer 3: Customer 4: Customer 5: What to Submit: After calculating the individual scores for Recency, Frequency, and Monetary, you can create customer segments: Example Customer 1: 555 Example: High-Value and Active Customers: High recency, high frequency, and high monetary value (e.g., Customer 1 and Customer 4). Create three different segments
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