How To Target High Yield Customers with RFM Score Analysis
The RFM model (recency, frequency, monetary value) uses marketing principles to help businesses quantitatively group customers into segments. Customer segmentation then allows you to adapt your communication strategies according to their buying habits.
For example, a price-sensitive customer would be more interested in discount offers, while a brand ambassador would be thrilled by a new product launch.
This RFM segmentation guide will help you better understand your customers, better meet their needs and thus increase your online revenues.
Table of contents:
• What Is RFM Segmentation?
• The Parameters of RFM Analysis
• What Makes RFM Analysis So Powerful?
• Limitations of Singular Segmentation
• Benefits of applying RFM segmentation
• Practical Applications of RFM Analysis in Business Strategy
• How t oCalculate RFM Scores
• RFM Segmentation Classification
• RFM Personalization Strategies for Key Cohorts
