Question

Suppose you work for an online sporting goods retailer. You've been hired as a business analyst with the task of increasing sales. Describe how you could use RFM and market-basket analysis to increase the sales of sporting goods. If used effectively, how could RFM and market-basket analysis affect customer satisfaction?

Thank you.

Answer 1

Working as a business analyst with task of increasing the sales I will use RFM analysis examines a customer's buying habits based on the recency of purchases , frequency of purchases and monetary expenditure for purchase. I will use RFM to find out the greatest potential customers and market basket analysis will use identify ancillary products these highly desirable customers are most likely to buy in addition to primary products and these analysis will increased our sales figures.