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
4.182
19
7/15/2013
1/11/2010
$310.92
4.783
18
8/20/2013
2/12/2010
$266.74
4.634
12
10/7/2013
6/26/2010
$234.34
3.415
23
5/31/2013
2/11/2010
$420.26
3.89 5.916
20
7/29/2013
1/31/2010
$344.85
3.927
21
7/9/2013
10/30/2010
$399.64
3.188
21
10/28/2013
1/25/2010
$315.98
3.949
22
6/13/2013
5/16/2010
$384.54
3.6310
22
9/20/2013
1/5/2010
$390.30
11
24
4/15/2013
1/24/2010
$432.26
6.0912
26
10/12/2013
2/16/2010
$432.84
6.7113
11
2/22/2013
7/11/2010
$205.78
3.1614
30
10/29/2013
3/30/2010
$525.30
7.9815
27
10/4/2013
1/6/2010
$421.91
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