We are a leading manufacturer of ergonomically engineered seating that promotes enhanced work environments and makes time spent on the job healthier, less stressful, and more productive. Paul Papiese My clients love their new chairs and the service that I provide thanks to the excellent customer service that I receive from RFM.
How do I build an RFM model?
The first step in building an RFM model is to assign Recency, Frequency and Monetary values to each customer. The raw data for doing this, which should be readily available in the company’s CRM or transactional databases, can be compiled in an Excel spreadsheet or database:
What is RFM segmentation and why is it important?
What is RFM Segmentation? RFM segmentation allows marketers to target specific clusters of customers with communications that are much more relevant for their particular behavior – and thus generate much higher rates of response, plus increased loyalty and customer lifetime value.
What is the third step in the RFM process?
The third step is to select groups of customers to whom specific types of communications will be sent, based on the RFM segments in which they appear. It is helpful to assign names to segments of interest. Here are just a few examples to illustrate:
