faq
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What is RFM analysis?
RFM (Recency, Frequency, Monetary) analysis is a customer segmentation technique that evaluates how recently a customer made a purchase (Recency), how often they purchase (Frequency), and how much they spend (Monetary). It helps identify your most valuable customers and target them with tailored marketing strategies.
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When should I perform RFM analysis?
You should perform RFM analysis when you want to improve customer retention, personalize marketing efforts, or identify high-value customer segments. It’s especially useful for e-commerce, subscription-based businesses, or any company with repeat purchase behavior. Regular analysis (monthly or quarterly) helps track changes in customer behavior over time.