There are two ways segmentation scoring can be done:
Automatic (available only in the Ultimate edition)
The segmentation score is set in a range of 1-5 by default. You can adjust the score range by moving the slider to the desired position like 1-2, 1-3, or 1-4.
Once the score range is set, you can choose either a manual or automatic method of calculation for assigning the segment labels to records.
Manual: You have to define the criteria manually and set the score for the system to use to compute the R, F, and M scores. For example:
Enter the score of the Recency score as 5 if the sale closing date is "between this week and last week" or "is not last month". Similarly, the score will be 4 if the recent purchase time is "till yesterday".
You can set that if the number of purchases is more than 8 in the Frequency field, the score will be 5 and if it is between 5 and 10 the score will be 4, and so on.
In the Monetary field, set the score as 5 if the amount spent is more than $1500 and 4 if the amount is between $800 and $1200.
Automatic: The system will automatically compute the RFM score using the percentile method. The entire data set is divided into five parts (to give scores within a range of 1-5) with distribution at the 20th percentiles. This means that each RFM score will be split across the percentiles percentile: 0 to 20, 20 to 40, 40 to 60.
For the recency score, the dataset will be arranged from the most recent purchase to the oldest purchase. For example, if the most recent purchase was a week ago and the oldest purchase was 6 months ago, CRM will set these two times as the boundaries and draw the percentiles within this time period. The scores will change at every 20th percentile.
If you'd like a personalized walk-through of our data preparation tool, please request a demo and we'll be happy to show you how to get the best out of Zoho DataPrep.
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