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Key Performance Indicator

Explore how to enhance sales data analysis by combining RFM clustering with key performance indicators. Learn to calculate an overall KPI score, segment data effectively, and visualize insights with interactive plots. This lesson enables you to interpret multidimensional sales metrics using clustering and data mining for actionable business decisions.

The RFM model is a widely recognized method for segmenting and analyzing data. However, simply clustering customers based on RFM is not enough. To extract truly actionable insights, we need to complement RFM analysis with key performance indicators (KPIs)A key performance indicator (KPI) is a quantifiable metric used to measure the performance. KPIs help assess progress by providing actionable insights into critical aspects of performance.. They help us assess the effectiveness of campaigns and overall business performance. ...