Recency – time elapsed since the last order
Posted: Thu Feb 13, 2025 4:41 am
The customer base is the company's main asset, and it should be used to the maximum. RFM analysis allows you to study and segment your customers by purchase history in order to select the most effective methods of work for them and increase repeat sales. In this article, we will tell you how to conduct RFM analysis and what strategy to use for each segment.
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What is RFM Analysis
RFM analysis is a method of segmenting customers based on their purchasing paraguay phone number list activity. The entire base is divided into groups depending on the number, amount and duration of purchases. Then, an individual interaction strategy is developed for each selected segment.
The abbreviation RFM stands for:
Frequency - the frequency with which a person buys something from a company.
Monetary - purchase amount. Average customer check.
Analysis of these parameters helps to identify people who buy often and in large quantities, one-time and in small quantities, or those who have not ordered anything for a long time. Accordingly, sales and marketing departments can focus their efforts on the most promising clients, and for the rest - select appropriate special offers and activate them.
You are reading the magazine Compass - a messenger for effective and safe teamwork.
Learn more about Compass
What is RFM Analysis
RFM analysis is a method of segmenting customers based on their purchasing paraguay phone number list activity. The entire base is divided into groups depending on the number, amount and duration of purchases. Then, an individual interaction strategy is developed for each selected segment.
The abbreviation RFM stands for:
Frequency - the frequency with which a person buys something from a company.
Monetary - purchase amount. Average customer check.
Analysis of these parameters helps to identify people who buy often and in large quantities, one-time and in small quantities, or those who have not ordered anything for a long time. Accordingly, sales and marketing departments can focus their efforts on the most promising clients, and for the rest - select appropriate special offers and activate them.