The RFM model is a fundamental customer segmentation technique based on three attributes: how recently a customer has purchased (Recency), how often they purchase (Frequency), and how much the customer spends (Monetary). The results of RFM analysis help to make profit by reducing marketing costs as well as increasing the efficiency of marketing initiatives by better targeting an existing customer base.
RFM analysis has successfully been helping marketers for more than 30 years, why not improve it by combining it strengths with demographic data and present its results in a smart way?
RFM analysis provides a business with advanced segmentation that leads not only to better customer experience through targeted communication, but also increases the efficiency of marketing spending. The analysis solves the following challenging questions.
RFM analysis software measures what your customers do in respect to what you offer: when they buy, how often they buy, how much they buy.
The demographic data of your customers provides you with the information of who your customers are: their age, income, household ownership, etc.
It is the combination of this data within CleverAnalytics that gets you the following:
The RFM model as a key marketing segmentation method that had withstood the years has now been improved by digital transformation brought by CleverAnalytics. Our approach to RFM analysis is leveraged mostly by our valued customers, whose indivisible part of the marketing mix is direct marketing.
Become the master of RFM Analysis–the one known for lowering direct marketing costs and for increasing customer experience by targeting the campaign communication precisely while not cutting on the revenue stream. Take the next step: start our free trial or schedule a personal 1-on-1 online demo.
Knowing who the most loyal customers are, who the ones who are about to leave or the biggest spenders are, all of these can help you in your direct marketing campaigns.
RFM analysis gets you a different and advanced view on your customer base. We believe your competition deserves the same attention. See how your competition is doing.