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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.

The Ultimate CVO Guide – 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

The Ultimate CVO Guide – 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

The Ultimate CVO Guide – 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

The Ultimate CVO Guide – RFM model: Ex-Lovers

Profitable, with many purchases but this happened a long time ago. The RFM group Ex-Lovers is best to reactivate and kept engaged even after.

Alexandra PanaitescuJanuary 19, 2021

The Ultimate CVO Guide – RFM model: Don Juan

The Don Juan RFM group has the customers who made one high-value purchase once, then disappeared without a trace. Can you win them back?

Alexandra PanaitescuJanuary 11, 2021

The Ultimate CVO Guide – RFM model: About To Dump You

The About to Dump You RFM segment is the category of customers that you're at risk of losing or you’ve already lost. How can you...

Alexandra PanaitescuDecember 28, 2020

The Ultimate CVO Guide – RFM model: Platonic Friends

Check out the Platonic Friends RFM group and learn how to transform Platonic Friends into more loyal, valuable customers for your eCommerce.

Alexandra PanaitescuDecember 21, 2020

eCommerce Customer Retention Apps: Reveal vs Metrilo

eCommerce customer retention apps: Reveal vs Metrilo. Which one better suits your business? Check out the differences!

Alexandra PanaitescuDecember 16, 2020

What is customer engagement?

Check out the definition and benefits of customer engagement, together with customer engagement examples and ideas to increase it.

Valentin RaduDecember 15, 2020

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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