RFM (Recency, Frequency, Monetary) is a well-known method for segmenting customers 🎯 based on the time since their last purchase (recency), the number of transactions (frequency), and the total amount spent (monetary value).
This approach helps identify your most valuable customers, enabling more targeted and personalized marketing campaigns that optimize spending. Typically, the best customers have high purchase frequency, recent activity, and high monetary value.
There are various ways to rank customers using RFM. A helpful tip is to use the formula below to calculate an RFM score more easily and rank customers effectively. Enjoy! (Source Connie L. Bauer, 1988) customers called to cancel, representatives would offer multiple “save” deals to retain them, leading to frustrating experiences.
With this new ruling, companies must reduce the hurdles for customers who wish to cancel their services. And as a result, businesses might need to gear up with new CRM win-back strategies to re-engage those customers after they’ve left!
#CRM #CustomerSegmentation #marketingstrategy #segmentation #customervalue #customercentricity
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