Nested binning

[aravindhebbali]

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.