RFM (Recency, Frequency, Monetary) analysis is a marketing technique used to quantitatively rank and group customers based on their purchasing behavior. In the retail industry, RFM analysis can be used to identify high-value customers, predict customer response, and personalize communication. Recency refers to the last time a customer made a purchase, Frequency refers to how often they purchase, and Monetary refers to how much the customer spends. By analyzing these factors, retailers can develop targeted marketing strategies to increase customer retention and profitability.
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