RFM (Recency, Frequency, Monetary) Segmentation
segmentation
customer
marketing
Industry
Retail
For Whom
Retail Marketers, Loyalty Program Managers, E-Commerce Leaders
Why You Need This
Generic offers waste budget. RFM segmentation lets you target VIPs, re-engage lapsed buyers, and personalize promotions.
How It Works
Each customer is scored for recency, frequency, and spend. Clustering groups them into actionable segments.
Data Type
Tabular
What You Need
Customer purchase history with timestamps and amounts.
What You Get
- Segment definitions: VIPs (top 10% all scores), At Risk (low recency, high past value), Lapsed (no purchase in 6+ months)
- Ready-to-use segment lists for campaigns
- Insights on segment-specific behaviors
How To Use It
Choose campaigns for each segment (e.g., reward VIPs, win back Lapsed). Import segment lists into your marketing platform.
Technique
Clustering
Business Impact
Increase conversion, boost repeat rate, and raise average spend (track segment-level uplift).
How We Deliver This
Dashboard, spreadsheet, or CRM-ready lists. Ongoing support for segment refresh.
Can Be Extended To
Personalized product recommendations, lookalike modeling, loyalty scoring.