Changing orders totaled by recency, frequency, and monetary (RFM)
In WebSphere Commerce Analyzer, orders associated with contracts and accounts are totaled by recency, frequency, and monetary amounts (RFM). The following conditions determine RFM:
- The most recent date of the shopping activity.
- The greatest number of orders placed.
- The most amount of money spent on the orders.
The data is ranked according to each variable and then divided into five equal containers. Each contract or account is assigned a number between one and five, which corresponds to their container assignment. The contract or account with the most recent shopping activity, the greatest number of orders, and the most money spent will have an RFM value of 555. The contracts or accounts with the least activity, the smallest number of orders, and the least amount spent have an RFM value of 111. RFM requires a minimum of five records (the number of containers) to run successfully.
Orders totaled by RFM are totaled per member or per trading agreement, or both.
To change orders to be totaled by RFM:
- Open the WebSphere Commerce Analyzer Parameter Manager.
- Select RFM. The Select Orders to be Totaled by RFM page displays.
- For each order item status, select Member or Trading Agreement or both depending on how you want to total orders.
- Click Apply. A message displays indicating whether the step was successful.
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