RFM Analysis Definition
A customer segmentation method called RFM analysis aids companies in comprehending and classifying clients according to their Recency, Frequency, and Monetary Value.
Recency (R): The time since a customer's last purchase. Promotions are more likely to be reacted to by customers who have recently made purchases.
Frequency (F): The frequency of a customer's purchases. Frequent buyers are more involved and devoted.
Monetary (M): The amount of money spent by a client. Consumers with higher spending levels are more valuable.

Advantages of RFM Analysis:
Better Customer Segmentation: By analyzing customer behavior, RFM analysis assists companies in identifying various customer groups.
Targeted Marketing: By focusing on particular client segments, businesses can develop marketing campaigns that are more successful.
Improved Customer Retention: Companies can put strategies into place by comprehending customer behavior.