The RFM model refers to recency, frequency, and monetary value. The RFM model predicts how a new customer will act in the future based on data from previous customers. RFM analysis lets marketers increase revenue by targeting specific groups of existing customers with messages based on data about particular behaviors (i.e., customer segmentation). Therefore, response rates, customer retention, customer satisfaction, and customer lifetime value increase (CLTV). Each RFM metric has been demonstrated to be useful in predicting future customer behavior and increasing revenue. Get this RFM model template and more on EdrawMax!
