Customer segmentation – LifeCycle Grids, CLV and CAC with R

We studied a very powerful approach for customer segmentation in the previous post, which is based on the customer’s lifecycle. We used two metrics: frequency and recency. It is also possible and very helpful to add monetary value to our segmentation. If you have customer acquisition cost (CAC) and customer lifetime value (CLV), you can easily […]

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Customer segmentation – LifeCycle Grids with R

I want to share a very powerful approach for customer segmentation in this post. It is based on customer’s lifecycle, specifically on frequency and recency of purchases. The idea of using these metrics comes from the RFM analysis. Recency and frequency are very important behavior metrics. We are interested in frequent and recent purchases, because frequency […]

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