TEACHING STATISTICAL RFM SEGMENTATION IN EXCEL
RFM (Recency, Frequency, Monetary) segmentation, visualization and interpretation belong among essential skills expected from "business study programs" graduates. However, specialized SWs suitable for these analyzes aren’t usually available at universities. Although Excel does not have a specialized module for RFM analyses there are standard Excel modules which can be easily adjusted to process it.
The aim of the article is first to present the adoption of standard Excel tools to perform tasks related to RFM segmentation (visualization, customers’ distribution and interactive evaluation). Further, the article covers a topic of teaching techniques needed for teaching multidisciplinary subjects. (Here, soft IT knowledge, business economics knowledge, critical thinking and inquiry based approach should be implemented.) Didactic notes are added.
The instructions for manual creation of standard graphs with settings adjusted for RFM segmentation will be supplemented with practical examples and its interpretations. Instructions for VBA programming as well as for related pivot tables will be provided for advanced users.
From students’ perspective using Excel for RFM segmentation is highly beneficial not only because of their familiarity with this SW but also for almost certain availability of Excel at any work place.