Taking responsibility for requirements is the single most ...

[james0929]

Taking responsibility for requirements is the single most important task a user can performfor a large-scale development project.
 
  Indicate whether the statement is true or false

Question 2

Describe the process of conducting RFM analysis.
 
  What will be an ideal response?

[gabrielle_lawrence]

Answer to Question 1

TRUE

Answer to Question 2

RFM analysis is a way of analyzing and ranking customers according to their
purchasing patterns. It is a simple technique that considers how recently (R) a customer has
ordered, how frequently (F) a customer orders, and how much money (M) the customer spends
per order.
To produce an RFM score, the program first sorts customer purchase records by the date of most
recent (R) purchase. In a common form of this analysis, the program then divides the customers
into five groups and gives customers in each group a score of 1 to 5. The 20 percent of the
customers having the most recent orders are given an R score of 1, the 20 percent of the
customers having the next most recent orders are given an R score of 2, and the last 20 percent
are given an R score of 5.
The program then re-sorts the customers on the basis of how frequently they order. The 20
percent of the customers who order most frequently are given an F score of 1, the next 20 percent
of most frequently ordering customers are given a score of 2, and the least frequently ordering
customers are given an F score of 5.
Finally, the program sorts the customers again according to the amount spent on their orders. The
20 percent who have ordered the most expensive items are given an M score of 1, the next 20
percent are given an M score of 2, and the 20 percent who spend the least are given an M score
of 5.

[james0929]

Thanks for the timely response, appreciate it

[kishoreddi]

Wow, this really help