RFM, also known as RFM analysis, is a type of customer segmentation and behavioral targeting used to help businesses rank and segment customers based on the recency, frequency, and monetary value of a transaction. The shopping cart information of the customers of a chain store is available in an Excel file for a period of 1 year. In this project, analysis will be done on this information. This information includes all the variables that are recorded in each customer's purchase invoice, including customer name, product name, customer ID, product ID, product number, product amount, total invoice amount, store branch number, etc. Elbow diagram is used to determine the number of clusters and silhouette index is used to determine the quality of clustering. To determine the quality of the final clusters, ANOVA index is used, and then CLV based on Shannon's RFMC weighting method is calculated for each cluster. Next, CLV based on Shannon's RFMC weighting method is calculated for each cluster.
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