RFM Analysis Presentation

Market Analytics
RFM ANALYSIS
Presented By Smita Patil

Problem Statement
An automobile parts manufacturing company has collected data of transactions for 3 years. They do not have any
in-house data science team, thus they have hired you as their consultant. Your job is to use your magical data
science skills to provide them with suitable insights about their data and their customers
Auto Sales Data: Sales_Data.xlsx
●Agenda & Executive Summary of the data

●Exploratory Analysis and Inferences
●Customer Segmentation using RFM analysis (make 4 segments)
●Inferences from RFM Analysis and identified segments
Executive Summary Of Data
● The dataset consist of 2747 rows and 20 columns.

● There are 1 datetime64[ns], 2 float64,5int64 and 12 object data type
columns.
● The data is for three years (2018,2019,2020).We will perform
exploratory data analysis first
● & then will perform RFM analysis.
● There are no missing values in data.
Exploratory Data Analysis
Outlier Checks
Observations:
Sales has a lot of
data points outside
the whisker from
upper quartiles
Distribution Plots
Observations:
Majority of customers have ordered quantity between 20-40
Price available has a tail on the right side.Price ranges from 26 to 252
Year -Wise Month Wise Sales
Revenue generated for last

3 months for both 2018 &
2019 is quite high and
November is peak month.
Monthly Sales w.r.t Countries
Monthly trend is observed across all countries .November is showing peak sales
for all 19 countries.
Country Wise sales
USA is highest in terms of sales followed by Spain ,France ,Australia ,UK

,Italy,Finland ,Singapore and Denmark.
Country Wise Yearly Sales
Sales Figure for USA,France and Canada

Have increased in 2019 compared to
2018.
Australia ,Norway and Singapore has

Decreasing trend for year 2019
compared to 2018
Sales Figure for Switzerland,Japan

,Ireland
Were 0 in 2018.
Quarterly Sales Trend
Highest Sales for 4th

Quarter for both 2018
and 2019
Quarterly Country Wise Sales
Observations:
For USA ,Quarter 4 sales is the highest
(Over Million)
Quarter 4 seems to have the highest sales
quarter among Spain ,France ,Australia
,Norway and UK.
USA is the only country where sales trend is
increasing from Q1 to Q4
No sales was observed in Quarter 3 for
Denmark ,Japan ,Philippines UK
Product Line Sales Wise Distribution
Product Line
Classic Cars has
About 39% share
of total sales
Top Customer Sales Wise
Top 5 Customers w.r.t

sales:
1. Euro Shopping
Channel
2. Min Gifts
Distributed Ltd
3. Australian
Collectors,co
4. Muscle Machine
Inc
5. La Rochelle Gifts
Top 10 Customer in Sales Year wise
Top 10
customers are
different for
each year .Top
2 customer are
same for both
years those are
Euro Shopping
Channel and
Mini Gift
Distributors
Ltd .
Customers Deal Size Wise
Monthly Active Customers
September ,October ,November have been the high

Months for both 2018 and 2019 .
However year 2020 has the high number of unique

customers for Jan ,March and May .
Infact this unique count is higher or equal to some

of the high Month of 2018 like September &
November of 2019.
Country Wise Deal Size
Maximum Sales is generated

through medium size
Deals and least through
large deals .
Status Wise Order Counts
Shipped is highest
for all years
High Numbers of
cancellation were
seen in 2019
Sales Trend
November has
record sales for
2018 & 2019
Top 5 Customers Quarter Month-Wise
It seems that
Euro shopping
Channel is
premium
Customers
RFM ANALYSIS
About Customer Segmentation Using RFM Analysis
● RFM analysis is a great technique to identify set of customers for distinctive
treatments.
● RFM segmentation allows marketers to target specific groups of customers
● With promotions that are more significant for their actual behaviour and
● Hence provides much higher proportion of response & increased loyalty .

RFM Analysis Using Python
We have segmented customer into 4

segments
Recency means most
recent,Frequency means most
frequent and monetary
We have grouped data by customer
names
Aggregation is done :
Frequency -Unique counts of orders
Monetary -Sum of sales
Recency- Minimum Of days since last
orders
RFM Segments
Who are your best customers ?(By RFM class=444)
Highest Frequency ,Highest Recency and highest Monetary

Which customers are at the verge of Churning ?
(Customers whose recency value is low )
Who are the lost customers ?
(Customers whose recency ,frequency as well as monetary values are low )
Who are your Loyal Customers ?
(Customers with High Frequency Values)
END

RFM Analysis Presentation

Uploaded by

Copyright:

Available Formats

RFM Analysis Presentation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RFM Analysis Presentation

Uploaded by

Copyright:

Available Formats

Market Analytics

Presented By Smita Patil

Auto Sales Data: Sales_Data.xlsx

●Agenda & Executive Summary of the data

● The dataset consist of 2747 rows and 20 columns.

Revenue generated for last

USA is highest in terms of sales followed by Spain ,France ,Australia ,UK

Sales Figure for USA,France and Canada

Australia ,Norway and Singapore has

Sales Figure for Switzerland,Japan

Highest Sales for 4th

Top 5 Customers w.r.t

September ,October ,November have been the high

However year 2020 has the high number of unique

Infact this unique count is higher or equal to some

Maximum Sales is generated

● RFM segmentation allows marketers to target specific groups of customers

● Hence provides much higher proportion of response & increased loyalty .

We have segmented customer into 4

Highest Frequency ,Highest Recency and highest Monetary

You might also like