Which of the following is a factor considered when a customer is evaluated based on RFM formula?
A) the amount of time passed after the customer's last visit
B) the product categories purchased by the customer
C) the mode of payment used by the customer
D) the location from which the customer has bought goods
E) the type of feedback provided by the customer

Question

Quizplus · Accepted Answer

RFM formula focuses on three factors: Recency, Frequency, and Monetary value. Recency refers to the amount of time passed after the customer's last visit, so option A is the correct answer. Option B refers to product categories which are not a factor in evaluating customers using the RFM formula. Option C (mode of payment) and option D (location) are not relevant to the RFM formula. Option E (type of feedback) may be considered in a customer satisfaction analysis, but not in the RFM formula.

Which of the Following Is a Factor Considered When a Customer