Overview
Most customer value analysis treats all customers equally or segments only by total spend. This misses critical patterns: a customer who spent €1000 once two years ago is not as valuable as a customer who spends €100 every month.
The RFM Segmentation Model analyzes three dimensions — Recency (how recently they purchased), Frequency (how often they purchase), and Monetary (how much they spend) — to identify customer segments with different value and retention strategies.
What you get: - RFM score calculation methodology - Customer segment definition (Champions, Loyal, At-Risk, Lost, etc.) - Segment size and revenue contribution analysis - Targeting strategy per segment (retention, win-back, upsell) - Segment migration tracking - Lifetime value projection by segment
Built for: e-commerce teams, retention marketers, and customer success teams who need to prioritize customer engagement based on value and risk — not treat all customers the same.