RFM analysis

Module purpose

Recency, frequency, and monetary value are important metrics used to identify a company or organization’s best customers.

This module will show you how to use this powerful technique for email marketing, particularly in transactional businesses such as catalogue retailers, travel, financial services and subscription services.

How is the Learning Path structured?

• Objectives
• RFM analysis overview
• The key metrics: Recency, Frequency and Monetary Value
• Assigning RFM values
• Additional methods of reviewing online customer behaviour
• Lifetime value calculations
• RFM in action
• Summary

Learning Objectives

• Correctly apply RFM as a behavioural segmentation technique for email marketing campaigns.