Product-Analysis-RFM

Business Task

• To focus on which month has the most revenue in a given year.
• To deduce the most sold product based on the highest revenue in a month.
• Use of RFM(Recency-Frequency-Monetary) analysis technique to find out the best customers.

RFM analysis

• Recency-Frequency-Monetary
• RFM analysis is a type of customer segmentation and behavioral targeting used to help businesses rank and segment customers based on the recency, frequency, and monetary value of a transaction.
• Here, recency - how long ago was their purchase(Number of days between recent date and recent date of each customer) frequency - how often they purchase(count(sales)) monetary - how much they spent(sum(sales))

Data Set

• View Dataset.

Tools

• Microsoft SQL Server 2019 for data analysis - View SQL scripts

Outcome

• 'Classic cars' was the most sold product in the month of November.
• Based on RFM analysis, customers were grouped into 'lost customers', 'slipping away, cannot lose', 'new customers', 'potential churners', 'active' and 'loyal'
• The best customers('active', 'loyal') are 15.