Identify focus groups using RFM analysis to understand which customer segments are most likely to be swayed by Targeted Advertising to maximize customer growth and retention.
Step-1: Segmenting customers on the basis of Recency,Frequency and Monetary Value to identify important segments and examine transition
Step-2: Predicting probability that the customer will purchase in the next quarter using RFM and segment information via logit model (logistic regression)
Step-3: Identifying focus groups based on purchase probabilities for targeted advertisements using market basket analysis
