Audience Segmentation RFM Builder
Segment customers using Recency, Frequency, Monetary (RFM) scoring for targeted marketing. Enter values for instant results with step-by-step formulas.
Worked Examples
Example 1: The Champion
Problem:Last bought 5 days ago, 25 total orders, $5,000 spent.
Solution:R=5, F=5, M=5. RFM=555.
Result:Segment: Champions
Example 2: The Churned Whale
Problem:Last bought 200 days ago, 50 total orders, $10,000 spent.
Solution:R=1, F=5, M=5. RFM=155.
Result:Segment: At Risk / Lost
Frequently Asked Questions
What is RFM Analysis?
RFM stands for Recency, Frequency, and Monetary value. It is a marketing technique used to quantitatively rank and group customers based on their purchasing history.
Can I use RFM for B2B?
Yes, but the thresholds change. Frequency might be 'contract renewals' and Monetary might be 'contract value'.
Does RFM replace CLV?
No. RFM measures *past* behavior. CLV (Customer Lifetime Value) predicts *future* value. However, RFM is a key input for calculating CLV.
How often should I recalculate RFM?
Ideally, daily or weekly. Customers move between segments constantly. A 'Recent User' today becomes 'At Risk' in 60 days if they don't buy again.