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We have done an RFM analysis on our customer data. Mary Jones has a score of "1 1 5". This series means that Mary ________ .

Answer & Solution
Correct Answer: Option B
RFM analysis is a marketing technique used to evaluate and categorize a customer’s behavior based on three factors:

R (Recency): How recently the customer has made a purchase.

F (Frequency): How often the customer makes a purchase.

M (Monetary): How much money the customer spends when they make a purchase.

Each factor is typically scored on a scale from 1 to 5, where:

1 indicates the lowest or worst performance, and 5 indicates the highest or best performance.

In Mary’s case, her RFM score is "1 1 5":

R = 1 → She hasn’t ordered recently.

F = 1 → She orders infrequently.

M = 5 → When she does order, she spends a large amount.

Therefore, Mary is classified as someone who hasn’t ordered recently, orders rarely, but places large orders when she does.
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1 Comment
Dr KD
Dr KD 1 year ago
Option B.] Should be the Answer