Article

What is RFM Analysis?

Peel Insights · peelinsights.com Free Beginner

The clean definitional explainer for Recency-Frequency-Monetary segmentation from the team that built cohort tooling specifically for ecommerce - a good five-minute primer before segmenting your own base.

  • RFM scores customers on Recency, Frequency and Monetary value to create actionable segments.
  • Segments like 'champions' and 'at risk' drive different retention-marketing tactics.
  • RFM is a lightweight alternative to full predictive LTV modelling for smaller brands.
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The question it answers

  1. What is RFM analysis, and how do I use it to segment customers for retention marketing?

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