RFM is certainly not perfect. We identified a company purchasing our product at huge discounts (sales, etc.). As such, they show up as a good customer, but only from the standpoint of the top line. The key is to check…
Category: Retail
Market Basket Analysis with python
Very elegant example at http://blog.derekfarren.com/2015/02/how-to-implement-large-scale-market.html. What is below is just a complete script with what the link above provides, along with example of our output. Our file was formatted slightly differently, so we had to change the split command. We…
Common retail terms defined
Inventory turn rate – How often you replenish inventory given its cost. The impact of this metric is to show efficiently inventory is managed. Dependent on the business, a low inventory turn rate can result in markdowns. For example, if…
Cost of Good Sold (COGS) and margins
This number represents what was spent in the direct production of goods for sale. For example, material used to produce clothing in a retail organization would fall in this category. Salaries for home office employees would not. If this number…