RFM analysis: tasks and stages of implementation
Posted: Sat Feb 01, 2025 8:56 am
What is it? RFM analysis is a method of segmenting the customer base, which distributes people by the recency of purchases, frequency and amount of money spent. Based on the data obtained, a marketing campaign, email newsletter is built or a channel for interaction with customers is selected.
How to implement? RFM analysis is carried out in three stages: first, information about buyers is collected for a selected period, then it is distributed into categories, and after that a decision is made for each group.
The article explains:
The essence and albania email list objectives of RFM analysis
Pros and cons of RFM analysis
What kind of business is RFM analysis suitable for?
Stages of RFM analysis
Using RFM Analysis Results in Communications with Clients
Application of RFM analysis in marketing
RFM analysis for creating mailings
Abbreviated RFM Analysis
Frequently Asked Questions about RFM Analysis
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
Download for free
The essence and objectives of RFM analysis
RFM analysis is a strategic method of customer classification that helps differentiate consumers into separate, non-overlapping groups. This tool helps identify consumers who:
buy often and in large quantities;
purchase goods in large quantities, but rarely;
do not make any purchases for a long time.
Using RFM segmentation allows you to increase the effectiveness of interaction with your audience, increase ROI and LTV. With this analysis, you can determine which clients should be shown this or that advertisement, which emails are suitable for each group, and which bonuses are best offered to consumers.
RFM analysis
Source: shutterstock.com
For example, regular customers can be sent information about new products and services launched by the company through personalized mailings. At the same time, motivating discounts are developed for consumers who have not placed orders for a long time.
RFM analysis is used by both B2C and B2B organizations. This method allows you to set up advertising campaigns, develop effective call scripts, and create targeted email newsletters.
RFM analysis is effective in the areas of e-commerce, direct sales, and even non-commercial interactions. It is especially valuable when the demand for goods and services is periodic.
However, for business segments with rare purchases, RFM consumer analysis will be ineffective. For example, in real estate or the sale of baby cots.
Read also!
"32 Ways to Attract Clients in 2025: Proven and Unconventional"
Read more
The RFM method is based on three key indicators:
Recency of purchase. This factor reflects how long ago the last transaction took place. Customers who recently made an order are more likely to respond to email newsletters or calls from a manager than those who purchased something more than a year ago.
Frequency of purchases. This parameter determines how often a customer places orders, uses services or performs other target actions in a certain period of time. For example, regular consumers may buy water once every two to three months, while office workers do it once every one to two weeks.
Purchase amount (Monetary). This parameter shows how much money, time or other resources the customer spent over a certain period of time. However, this indicator has less influence on predicting consumer behavior compared to Recency and Frequency. The fact is that many customers who make large purchases are very busy people. Therefore, they rarely respond to calls or marketing emails.
How to implement? RFM analysis is carried out in three stages: first, information about buyers is collected for a selected period, then it is distributed into categories, and after that a decision is made for each group.
The article explains:
The essence and albania email list objectives of RFM analysis
Pros and cons of RFM analysis
What kind of business is RFM analysis suitable for?
Stages of RFM analysis
Using RFM Analysis Results in Communications with Clients
Application of RFM analysis in marketing
RFM analysis for creating mailings
Abbreviated RFM Analysis
Frequently Asked Questions about RFM Analysis
5 Scenarios for Using Neural Networks to Increase Website Profits by 40%
Download for free
The essence and objectives of RFM analysis
RFM analysis is a strategic method of customer classification that helps differentiate consumers into separate, non-overlapping groups. This tool helps identify consumers who:
buy often and in large quantities;
purchase goods in large quantities, but rarely;
do not make any purchases for a long time.
Using RFM segmentation allows you to increase the effectiveness of interaction with your audience, increase ROI and LTV. With this analysis, you can determine which clients should be shown this or that advertisement, which emails are suitable for each group, and which bonuses are best offered to consumers.
RFM analysis
Source: shutterstock.com
For example, regular customers can be sent information about new products and services launched by the company through personalized mailings. At the same time, motivating discounts are developed for consumers who have not placed orders for a long time.
RFM analysis is used by both B2C and B2B organizations. This method allows you to set up advertising campaigns, develop effective call scripts, and create targeted email newsletters.
RFM analysis is effective in the areas of e-commerce, direct sales, and even non-commercial interactions. It is especially valuable when the demand for goods and services is periodic.
However, for business segments with rare purchases, RFM consumer analysis will be ineffective. For example, in real estate or the sale of baby cots.
Read also!
"32 Ways to Attract Clients in 2025: Proven and Unconventional"
Read more
The RFM method is based on three key indicators:
Recency of purchase. This factor reflects how long ago the last transaction took place. Customers who recently made an order are more likely to respond to email newsletters or calls from a manager than those who purchased something more than a year ago.
Frequency of purchases. This parameter determines how often a customer places orders, uses services or performs other target actions in a certain period of time. For example, regular consumers may buy water once every two to three months, while office workers do it once every one to two weeks.
Purchase amount (Monetary). This parameter shows how much money, time or other resources the customer spent over a certain period of time. However, this indicator has less influence on predicting consumer behavior compared to Recency and Frequency. The fact is that many customers who make large purchases are very busy people. Therefore, they rarely respond to calls or marketing emails.