The RFM modeling framework is built around three quantitative factors: recency, frequency, and monetary value. Because frequency and economic value affect a customer's lifetime value, and recency affects retention, a measure of engagement, these RFM metrics are important indicators of a customer's behavior. Businesses that do not have a monetary component, such as viewership, readership, or surfing-oriented products, could use Engagement parameters instead of monetary ones. According to the RFM modeling framework, the more recent the purchase, the more responsive the customer is to promotions. Learn more about this model and start creating your own diagram using EdrawMax templates!