Regency Frequency Monitization (RFM) model

The RFM model

Despite the current love affair with predictive models, direct marketing’s three-variable formula, Recency-Frequency-Monetary Value (RFM), still has a place in modern database marketing. RFM is not a replacement for inferential statistics. But in the real world, RFM can still be useful when models are not practical. RFM also provides a management summary of customer behavior based on purchases and plays a role in policing the black-box results of predictive models to ensure quality before a campaign is implemented. 

 

In this eBook

Segmentation of Customers

Recency – Frequency – Monetary Value (RFM)

Validate a Predictive Model with RFM before You Contact Customers

A Modern Take on Recency

A Modern Take on Frequency

A Modern Take on Monetary Value

RFM Model

Best Practices for using RFM

 

source: hubspot.net

 

Language: English
Read more
Authors: Docent Ecommerce

Document type: Topic Report

Publication date: 10-10-2017

Number of pages: 17

Share this report

asds