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RFM Articles

This section is dedicated to RFM – a method that is getting more and more popular among ecommerce marketers because it allows them to measure customer value by looking at existing purchase data.

The RFM model allows you to attribute a score to each customer based on three factors Recency (R), Frequency (F), and Monetary Value (M). After you calculate the RFM score for each existing customer, you can group your customer base into segments based on their purchase history. You can do this either manually, by exporting customer data and calculating the score for each customer, or automatically, by using a dedicated RFM analysis and segmentation tool.

RFM has a direct impact on customer retention and customer value optimization. Dive deeper into RFM analysis & segmentation to find how you should treat each RFM segment, what RFM segments to concentrate on and how to use RFM segmentation to generate more valuable customers.

What is RFM Analysis and how it keeps you relevant in the eComm Arena?

See how to use RFM segmentation and analysis to prevent churning, perfect your marketing strategies and optimise your product assortment.

Oana PredoiuJune 3, 2022

How to calculate the RFM score for each customer

Discover how to calculate the RFM score for each customer and identify different segments based on their score.

Alexandra PanaitescuDecember 1, 2021

Developing customer segmentation strategy based on the RFM model

Learn how to choose the right customer segmentation method for your eCommerce store and develop segmentation strategies based on the alternative you chose.

Alexandra PanaitescuOctober 19, 2021

RFM based marketing strategies for customer segments

Discover how RFM based marketing helps you build effective strategies for your customer segments based on the valuable information you already have.

Alexandra PanaitescuOctober 7, 2021

A simple guide to RFM Segmentation

Discover RFM segmentation and change the way you analyze, approach, and value your customers. Align your company’s priorities with your most valuable customers.

Alexandra PanaitescuJuly 16, 2021

Effective Customer Segmentation through RFM Analysis

As with any love relationship, your customers go through many love stages with your store. Enter RFM Analysis, your guide to unlocking your customers' hearts...and...

Juliana JacksonMay 13, 2021

Integrating CVO into your Growth Strategy

After a thorough analysis of the CVO methodology, it's time to go through the process of integrating CVO into your eCommerce growth strategy.

Alexandra PanaitescuFebruary 10, 2021

RFM model: Breakups

The Breakup RFM group has your inactive customers, attracted by your discount campaigns and low-value products. What can you do with this RFM segment? There...

Alexandra PanaitescuFebruary 3, 2021

RFM model: Apprentice

The Apprentice RFM group consists of new customers who just placed their new order so they are very important to your business. Make them repeat...

Alexandra PanaitescuJanuary 25, 2021

Did you know that there's a tool for Customer Value Optimization?

It’s called Reveal and it uses automated segmentation and insights based on your first-party data to help you increase the number of loyal customers and improve Customer Lifetime Value.

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