Customer Segmentation in E-Commerce: Deterministic RFM vs. Machine Learning Models
Introduction: The Context and The Problem In e-commerce, retail, and digital services, treating all customers equally is a mathematical guarantee of negative ROI. Marketing budgets must be allocated dynamically: high-value retention campaigns for VIPs, aggressive discounts for churning users, and cost-efficient onboarding for new sign-ups. To solve this, businesses rely on RFM Analysis (Recency, Frequency,…
