Analyst in Action

Source You must be aware of various customer segmentation techniques and analyses. Let's discuss one of the most important analyses today i.e. RFM Segmentation. What is this 3 letter term can do? The answer is it can do wonders let's get to know more about it. RFM analyses are the method of separating your customers based on RFM scores which will help you in identifying your best customers and lost customers. RFM is an acronym for Recency, Frequency, and Monetary. The main idea behind this analysis is to understand your customers well because it will separate your customers based on how recently your customer made any purchase, how often they are buying, and what is the average cost of their orders. RFM analyses can be performed in various analytical and programming tools such as Python, R, and Excel. I have done it in Excel on sample data. How to do it in Excel?   Select the right data and insert a pivot table and select the pivot table field accordingly in my case I have se...

Want to retain your customers then you are at the right place. It can be achieved by Cohort Analysis but the question is how this analysis helps in achieving it. Let's get started by understanding it. Cohort Analysis is used by the analyst to determine the user engagement of customers over time. To be more precise it helps to know whether our user engagement is increasing or decreasing over a period of time. It is done to know the level of user engagement and the customer churning rate in any organization.  In marketing, the cohort is referred to as the group which possesses similar characteristics or traits, and this analysis helps us to divide customers based on their behavior. To get a better understanding of your audience you need to perform such analysis on regular basis. It can be performed in almost every analytical tool mostly organizations prefer Google Analytics but I have done it in Tableau.  This analysis is done in Tableau. Let me walk through it and explain what ...