Superior methods for higher buyer insights
![Towards Data Science](https://miro.medium.com/v2/resize:fill:48:48/1*CJe3891yB1A1mzMdqemkdg.jpeg)
The RFM (Recency, Frequency, Financial) mannequin, with its simplicity and ease of implementation, stays an important device for buyer relationship administration, providing invaluable insights into buyer behaviour.
Constructing on the groundwork from my earlier article “The way to Create an RFM Mannequin in BigQuery”, on this article, we are going to discover methods of bettering the mannequin.
Right here’s what we’ll cowl on this article:
So, you’ve received your RFM mannequin up and working in BigQuery, sorting your prospects into teams like Champions, Potential Loyalists, At Danger of Shedding and so forth. It’s an important begin, however we will kick it up a notch.
Whereas breaking down your prospects into these teams tells a pleasant story, including what I wish to name a Buyer Rating can reinforce the mannequin with a single, intuitive metric.
Why and What’s a Buyer Rating?
Assume again to the final time you determined to purchase a cell phone. There are tons of choices on the market, and making an attempt to determine which one has one of the best digicam, battery life, or display screen whereas additionally inside your finances can really feel like an excessive amount of.
That’s the place tech evaluation websites come in useful. Take DxOMark or benchmarks.ul for instance. They break down all these difficult rankings into easy scores.
It makes evaluating smartphones good and straightforward with out having to get into the nitty-gritty of how these scores happened.
That is just about what the Buyer Rating is. Similar to these helpful scores make choosing a cellphone simpler, the Buyer Rating simplifies understanding your prospects by boiling down all their actions into one easy-to-get quantity.