How This Workflow Works
This workflow processes transactional data to assign RFM scores to customers, clusters them based on these scores, and calculates customer lifetime value (CLV). It then presents customer insights through interactive visualizations.
Key Features:
- Segment customers using RFM scoring and clustering
- Calculate customer lifetime value for deeper insights
- Identify patterns and correlations in customer behavior
- Visualize customer segments and key metrics interactively
Step-by-step:
1. Calculate RFM Metrics and Customer Value:
The workflow aggregates transactional data to compute recency, frequency, and monetary value for each customer. It also calculates customer lifetime value, providing a comprehensive view of individual customer worth.
2. Cluster Customers by RFM Scores:
Using clustering techniques, the workflow groups customers based on their RFM metrics. This segmentation helps identify distinct customer groups, such as high-value or at-risk customers.
3. Combine RFM and CLV Insights:
The workflow merges RFM clusters with customer lifetime value data, enabling a multi-dimensional analysis of customer segments. This step supports more targeted marketing and retention strategies.
4. Visualize and Share Insights:
The workflow generates interactive charts and plots, allowing users to explore customer segments, compare key metrics, and identify trends. These visualizations make it easier to communicate findings and support data-driven decisions.