How can I create a RFM model?
Asked 3 years ago
Hi there. I am having issues with retaining customers and I therefore am looking to implement an RFM model to improve customer experience. However, I do not know how to manually conduct an RFM analysis. Does anybody have a step-by-step guide I can use for this? TYIA.
Abeeha Qasmi
Wednesday, December 07, 2022
RFM model isn't restricted to a single process. Instead, it involves the segmentation and analysis using three different aspects of recency, frequency, and monetary adjustment of groups. Following are the steps involved in it:
- Assign the three aspect values to each customer.
- Classify the customer groups into appropriate categories.
- Select the groups you want to communicate with.
Please follow our Community Guidelines
Related Articles
How to Calculate Cost of Goods Sold (COGS) for your Shopify Store
Brody Hall
April 21, 2023
How to Calculate Gross Profit % (Formula, Examples, & Template)
Ashley Stander
April 18, 2023
How Suntouched Double Their Profits and Cut Expenses in Half
Staff Editor
October 15, 2023
Related Posts
Blog
Ashley Stander
A Marketer’s Guide to CPM Across Social Media
Can't find what you're looking for?