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16) The id number of the most valuable customer is - 14. This customer did the h

ID: 373555 • Letter: 1

Question

16) The id number of the most valuable customer is - 14. This customer did the highest number of transactions, that is 30 transactions between 2010 and 2013 and the frequency of the transactions is the highest when compared to the rest of the customers. The value of the transactions with respect to this customer is the highest.

17) The id number of the least valuable customer is - 13. This customer did the least number of the transactions, that is 11 transactions between 2010 and 2013 and the frequency of the transactions is lower when compared to the rest of the cystomers. The value of the transactions with respect to this customer is the lowest.

Explanation / Answer

RFM analysis is used to understand consumers' purchase behaviors and segment customers based on the information. The following data includes transaction information of 15 customers. As of 01/01/2014, identify who is the most valuable customer and who is the least valuable customer based on RFM analysis.Fill in the blanks below.

Customer

Total

Most

Start

Monetary

Years of

Frequency

ID

Transactions

recent

Date

Value

customer relationship

Per year

1

16

9/20/2013

3/6/2010

$281.13

2

19

7/15/2013

1/11/2010

$310.92

3

18

8/20/2013

2/12/2010

$266.74

4

12

10/7/2013

6/26/2010

$234.34

5

23

5/31/2013

2/11/2010

$420.26

6

20

7/29/2013

1/31/2010

$344.85

7

21

7/9/2013

10/30/2010

$399.64

8

21

10/28/2013

1/25/2010

$315.98

9

22

6/13/2013

5/16/2010

$384.54

10

22

9/20/2013

1/5/2010

$390.30

11

24

4/15/2013

1/24/2010

$432.26

12

26

10/12/2013

2/16/2010

$432.84

13

11

2/22/2013

7/11/2010

$205.78

14

30

10/29/2013

3/30/2010

$525.30

15

27

10/4/2013

1/6/2010

$421.91

Q16. What is the ID number of the most valuable customer?

Q17. What is the ID number of the least valuable customer?

Customer

Total

Most

Start

Monetary

Years of

Frequency

ID

Transactions

recent

Date

Value

customer relationship

Per year

1

16

9/20/2013

3/6/2010

$281.13

4.18

2

19

7/15/2013

1/11/2010

$310.92

4.78

3

18

8/20/2013

2/12/2010

$266.74

4.63

4

12

10/7/2013

6/26/2010

$234.34

3.41

5

23

5/31/2013

2/11/2010

$420.26

3.89 5.91

6

20

7/29/2013

1/31/2010

$344.85

3.92

7

21

7/9/2013

10/30/2010

$399.64

3.18

8

21

10/28/2013

1/25/2010

$315.98

3.94

9

22

6/13/2013

5/16/2010

$384.54

3.63

10

22

9/20/2013

1/5/2010

$390.30

11

24

4/15/2013

1/24/2010

$432.26

6.09

12

26

10/12/2013

2/16/2010

$432.84

6.71

13

11

2/22/2013

7/11/2010

$205.78

3.16

14

30

10/29/2013

3/30/2010

$525.30

7.98

15

27

10/4/2013

1/6/2010

$421.91

3.77
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