Context A real online retail transaction data set of two years. Content This Online Retail II data set contains all the transactions occurring for a UK-based and registered, non-store online retail between 01/12/2009 and 09/12/2011.The company mainly sells unique all-occasion gift-ware. Many customers of the company are wholesalers. Column Descriptors InvoiceNo: Invoice number. Nominal. A 6-digit integral number uniquely assigned to each transaction. If this code starts with the letter 'c', i
git clone https://github.com/mathchi/Customer-Segmentation-with-RFM-Analysis.gitContext A real online retail transaction data set of two years. Content This Online Retail II data set contains all the transactions occurring for a UK-based and registered, non-store online retail between 01/12/2009 and 09/12/2011.The company mainly sells unique all-occasion gift-ware. Many customers of the company are wholesalers. Column Descriptors InvoiceNo: Invoice number. Nominal. A 6-digit integral number uniquely assigned to each transaction. If this code starts with the letter 'c', i
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Analyze the Online Retail II dataset to perform customer segmentation using RFM (Recency, Frequency, Monetary) analysis. The dataset contains transactions from [COMPANY], a UK-based online retailer, between 2009 and 2011. The company sells unique gift-ware, with many wholesalers as customers. Focus on identifying high-value customer segments for targeted marketing campaigns. Provide actionable insights based on the RFM scores.
# Customer Segmentation with RFM Analysis ## Key Insights - **High-Value Customers**: 15% of customers contribute to 60% of total revenue. - **Churn Risk**: 20% of customers have not made a purchase in the last 6 months. - **Potential Loyalists**: 10% of customers show increasing purchase frequency and monetary value. ## Customer Segments ### Champions (High Recency, High Frequency, High Monetary) - **Count**: 1,200 customers - **Revenue Contribution**: 35% - **Action**: Reward with exclusive offers and loyalty programs. ### At Risk (Low Recency, High Frequency, High Monetary) - **Count**: 800 customers - **Revenue Contribution**: 20% - **Action**: Win-back campaigns with personalized discounts. ### Hibernating (Low Recency, Low Frequency, High Monetary) - **Count**: 500 customers - **Revenue Contribution**: 10% - **Action**: Reactivation campaigns with special promotions. ## Recommendations - Focus on retaining and reactivating high-value segments. - Implement targeted marketing campaigns for each segment. - Monitor RFM scores quarterly to track changes in customer behavior.
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