Customers who have recently purchased something are more likely to respond to marketing measures than those whose last purchase was a long time ago. 2. Frequency (F): The Frequency indicates how often customers shop in a shop. Regular customers are more likely to respond to marketing measures than C Level Contact List people who rarely buy something from you. 3. Monetary (M): The monetary value of a purchase, the turnover, is also relevant.
Those who spend larger sums are more likely to be influenced by marketing measures than those who only spend small sums. The sum of these three KPIs results in the so-called RFM score. It should be noted that “Recency” is the most important factor, followed by the other two factors. Graphic RFM analysis RFM segmentation There are basically two ways to carry out customer segmentation using RFM analysis: Classification based on fixed values.