RFM Customer Segmentation & Cohort Analysis

This project aims to analyze the online retail dataset, understand customer behavior, and do customer segmentation to derive actionable insights for effective business strategies. We worked as a group on this project. At the beginning, we understood the data we were working with. Then, clear it from duplicated, noisy, and null values. We found out that most customers are located in the UK and spend more than in other countries. Then, we did RFM Customer Segmentation which is RECENCY: Time since last purchase, FREQUENCY: Total number of purchases., and MONETARY VALUE: Total monetary value. After that, we applied clustering. There were four clusters in the data. Final Created Cohort and Conducted Cohort Analysis, where we grouped customers into “cohorts” based on shared characteristics, especially when they started using a product.