Recency, Frequency, Monetary framework for Customer Segmentation in PowerBI

Reach Frequency, Monetary (or RFM) analysis is a longstanding tool for identifying segments of customers that are higher value.

RFM takes into account 3 factors for determining the value of different customers: 

  1. Recency 
    When did the customer last buy an item? Can we identify if a customer is “active” or has “lapsed”? 
  2. Frequency 
    How many times has a customer made a purchase? Can we identify customers who make many purchases, or few purchases?
  3. Monetary 
    How much in total has each customer spent?

Using some mock data from dunnhumby I was able to put together a dashboard in PowerBI to showcase the utility of having this analysis in interactive form.

For more details on this RFM analysis check out my post over on the Panalysis blog.

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