Knowing how your customers are engaging with your business is vital. It can help you to take advantage of opportunities as well as quickly address issues of concern, ensuring you hit the spot with each customer every single time.
What is RFM Analysis?
RFM (recency, frequency, monetary) analysis is a marketing technique used to determine quantitatively which customers are the best ones by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary).
Put simply, RFM uses business data to segment a pool of customers based on their purchasing behaviour. The resulting customer segments are neatly ordered from most valuable to least valuable. This makes it straightforward to identify best customers.
With blueberrywave RFM analysis, we look at what your customers have been doing:
- When they last bought from you
- The frequency of their custom
- Their monetary spend – and consequential value to your business
Nurture your most valuable customers
This information drives tailored communications planning. With the insights you receive, you can drive up sell, cross sell and reactivate purchase behaviours. You’ll be able to decide who to promote to and predict the response rate, as well as determine which of your products or services attracts high value customers, and focus on them to increase loyalty and profitability.
RFM puts hard measures on your business, pointing to the levels of retention or acquisition required to support business levels, and deliver measurable growth.
Blueberry Wave’s RFM analysis will help your business build more profitable relationships with customers and reduce your overall operational costs.