Analysis of Ajax Inc. RFM Score

What is Ajax Inc.'s RFM score based on the given data?

Is it A) 155 B) 511 C) 555 D) 151

Answer:

Ajax Inc. is most likely to have an RFM of 155.

RFM (Recency, Frequency, Monetary) analysis is a method used to evaluate customer behavior based on three factors: how recently a customer has purchased (Recency), how often they purchase (Frequency), and how much they spend (Monetary).

In the case of Ajax Inc., they have not ordered linen in some time, indicating a likely low recency score (R). However, when they did order in the past, they ordered frequently and with the highest monetary value, resulting in a frequency score (F) of 5 and a monetary score (M) of 5.

Therefore, based on the given circumstances, Ajax Inc. has an RFM score of 155, where R=1, F=5, and M=5.