Segmentation Targeting Positioning Interview Questions & AnswersMarketing Foundations Interview Questions & Answers

RFM Segmentation

Gauge your mastery of the time‑tested Recency‑Frequency‑Monetary framework. Find out whether you can rank customers like a pro.

In RFM analysis, the 'R' stands for ______.

Recency

Response

Retention

Revenue

Recency measures how recently a customer purchased, which often correlates with likelihood to buy again.

A customer with high Recency but low Frequency and Monetary likely made ______.

many small purchases

no purchase at all

frequent website visits

one recent purchase

Their last order was recent but they haven’t bought often or spent much, hinting at a new or one‑off buyer.

Monetary value in RFM is commonly measured as ______.

days since signup

number of orders

total spend

average basket size

Aggregating spend captures revenue contribution and differentiates high‑value patrons from low spenders.

To compare recency across customers, marketers often calculate ______ since last purchase.

number of SKUs

elapsed days

session length

open rate

Subtracting last order date from the analysis date normalises recency on a uniform timescale.

Quintile scoring in RFM assigns each variable a score from ______.

A to E

0 to 100

10 to 50

1 to 5

Splitting the distribution into five equal parts is a common default that yields 125 RFM cells in total.

Customers with low R, low F, and low M are prime targets for ______ campaigns.

cross‑sell bundles

reactivation

VIP perks

loyalty‑tier upgrades

Dormant buyers can be prompted back with win‑back offers, whereas engaged buyers need different messaging.

RFM assumes that customers with higher scores are more likely to ______.

visit physical stores

respond to future offers

unsubscribe quickly

download the app

High spenders who purchase frequently and recently usually show greater lifetime responsiveness to promotions.

Combining 5‑point scores for R, F and M yields ______ distinct RFM segments.

125

15

75

25

Cartesian multiplication of 5 tiers across three variables produces 5×5×5 possible score combinations.

Replacing Monetary with contribution margin lets brands focus on ______.

net promoter score

gross profit impact

email engagement

inventory turnover

Using margin instead of revenue prioritises customers who deliver healthy unit economics, not just sales volume.

RFM segmentation works best for businesses characterised by ______ purchase cycles.

one‑time

repeat

lifetime

contract‑based

Multiple transactions are needed to observe frequency and monetary patterns; one‑off industries gain limited insight.

Starter

Good start—review rfm basics.

Solid

Strong grasp—polish a few finer points.

Expert!

You’ve mastered rfm segmentation.

Understanding RFM Segmentation Interview Questions equips you to analyze customer value and behavior effectively. Start with our segmentation targeting positioning interview questions guide to see how recency, frequency, and monetary metrics integrate into overall strategy. Then deepen your expertise with the B2B segmentation bases question set, test your evaluation skills through the segmentation criteria check MCQs, and explore cutting-edge methods via the AI-driven segmentation interview questions. Working through these interview questions will boost your confidence when discussing RFM segmentation techniques.

Hi, I am Aniruddh Sharma. I’m a digital and growth marketing professional who loves transforming complex strategies into simple, interactive learning experiences. At QuizCrest, I design marketing quizzes that cover SEO, Google Ads, Meta Ads, analytics,…

What's your reaction?

Related Quizzes

1 of 50

Leave A Reply

Your email address will not be published. Required fields are marked *