Customer Behavior Analysis using Machine Learning

Abstract

RFM (Recency, Frequency, Monetary) investigation is a demonstrated showcasing model for conduct based client division. It groups clients dependent on their exchange history – how as of late, how frequently and what amount they buy.RFM helps partition clients into different classes or groups to distinguish clients who will react to advancements and how. This RFM examination depends on a blend of three boundaries. For instance, we can say that individuals who spend the most on items are our best clients. A large portion of us coincide and think about something very similar. In any case, Imagine a scenario in which they were bought just a single time. Or on the other hand an extremely quiet past? Consider the possibility that they are done utilizing our item. would they be able to in any case be viewed as your best clients? Most likely not. Making a decision about client esteem from only one perspective will give you a mistaken report of your client base and their lifetime. That is the reason, the RFM model joins three diverse clients ascribed to rank clients. In the event that they purchased in the recent past, they get higher focus. On the off chance that they purchase ordinarily, they get a higher score. What's more, on the off chance that they spend greater, they get more focus. Thus, we Combine these three scores to make the RFM score. At long last we can portion the client data set into various gatherings dependent on this RFM score.