Recency, frequency, and monetary value are all included in this RFM table. The idea is to segment customers based on their most recent purchases, frequency of investments in the past, and total spending. These three indicators are good predictors of a customer's willingness to engage with marketing messages and offers. While the RFM table originated in direct mail, it is now a powerful tool for eCommerce stores. The catalog industry was the first known application of RFM analysis. Land's End, JCPenney, and others were early adopters. Learn more about this model and start creating your own diagram using EdrawMax templates!
