RFM analysis
Helps you split customers into groups and understand whom to talk to, and about what.
What it is
Customers are scored on three signs: Recency — how long ago they bought, Frequency — how often, Monetary — how much. The combination shows who your best customers are, who is drifting away and whom it is time to win back.
How to use it
- Export a year of purchases from your CRM: customer, date, amount.
- For each sign, split customers into 3 groups: high, medium, low.
- You get segments such as “long ago, rarely, little” or “recently, often, a lot”.
- Give each segment its own message: thanks and news for the best, a reason to come back for those drifting away.
Example
A beauty salon: a client came two weeks ago, comes every month and spends a lot — she gets an invitation to a new service. A client who hasn't come for six months gets a reminder and a comeback discount.
