Use Recency, Frequency, and Monetary value to find and serve your best customers. See how to score segments and apply them to decision‑making and models.
RFM stands for Recency, Frequency, and Monetary value; a common high‑value segment has scores ______.
R=1, F=1, M=1
R=5, F=5, M=5 in a 1–5 scoring scheme
R=2, F=2, M=2
R=5, F=1, M=1
Recency measures how long since the last ______.
email send by the brand
purchase or revenue‑generating action
inventory shipment to the warehouse
page view regardless of intent
Frequency usually tracks ______ over a fixed time window.
count of orders or transactions
coupon codes available on site
support tickets created
ad impressions served
For profit‑focused segmentation, Monetary is best measured as ______.
contribution margin or net revenue, not list price
marketing budget size
gross merchandise value only
catalog breadth
A customer with high Frequency and Monetary but low Recency is often a ______.
lapsed loyal who merits reactivation
newcomer with unknown value
price‑only shopper
inactive prospect never purchased
Equal‑frequency binning (quantiles) for R, F, and M helps because ______.
it forces all scores to be identical
it creates balanced groups that compare well across time
it replaces the need for cohorts
it removes seasonality by itself
RFM is descriptive by itself but becomes predictive when ______.
converted to colors on a dashboard
used as features inside models like uplift or CLV
applied without labels
limited to demographics only
To avoid discount bias in RFM, compute Monetary on ______.
list price before any adjustment
net revenue after returns and discounts
average catalog MSRP
ad spend per click
In subscriptions, Frequency can be defined as ______.
number of app launches per day only
count of marketing emails sent
SKU count in catalog
number of successful bills or renewals in a window
Combining RFM with channel and lifecycle cohorts mainly improves ______.
brand color selection
site speed
inventory forecasting only
targeting and timing for offers
Starter
You’re getting started. Revisit how R, F, and M are scored and used in campaigns.
Solid
Well done. Tighten scoring choices and connect segments to profit, not just revenue.
Expert!
Outstanding. You can deploy RFM in targeting and modeling to maximize CLV.
