Question

Similarlities between HCM and RFM methods in reduced levels

Answer 1

Answer:

Explanation:

Several segmentation criteria are available for customer segmentation. Customer groups can be formed based on demographic characteristics (age, earnings, industry, etc.) as well as purchasing history (sales, purchasing activity, etc.). The RFM-analysis focuses on the latter. The descriptive approach impresses with its ease of implementation, intuitive handling, and pleasant flexibility.Recency (R) of a customer: Days since the last purchase.

Frequency (F) of the bookings/turnover of a customer: Number of purchases, e.g., in 6 months.

Monetary (M) - The total turnover of a customer: Sum of sales, e.g., in 6 months.