Interesting business models

Introduction

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Transaction data analytics

The RFM segmentation

The RFM idea is to segment customers based on the recency (R), the frequency (F), and the monetary value (M). It is quite a basic study, though rather powerful and easy way of clustering customers. Keep that in mind. It is a tool that is often used by companies to segment their customers, find the most active/important ones vs the less important ones.

See https://medium.com/@tomar.ankur287/customer-segmentation-using-rfm-analysis-in-python-bb6f1bd2fce5 (very basic)

See https://www.kaggle.com/regivm/rfm-analysis-tutorial (based on https://github.com/joaolcorreia/RFM-analysis/blob/master/RFM%20Analysis.ipynb), more advanced, since it tries to combine the R, F, M metrics into one. Pretty interesting.