Currently, only independent binning method is available where customers are binned independently by recency, frequency and monetary value. Below is a brief description of nested binning method:
customers are first binned by recency value
customers in each recency bin are binned by frequency value
customers in each recency-frequency bin are binned by monetary value
We can also think of allowing the user to choose the criteria for binning at each of the above levels.
Currently, only independent binning method is available where customers are binned independently by recency, frequency and monetary value. Below is a brief description of nested binning method:
We can also think of allowing the user to choose the criteria for binning at each of the above levels.