Recency, Frequency, Monetary value. The calculation of scores based on these three transactional variables has a lot of sway over the minds of fundraisers, and I just don’t understand why.
It’s one of those concepts that never seems to go away. Everyone wants a simple way to whip up an RFM score. Yet anyone who can do a good job of RFM is probably capable of doing real predictive modeling. The persistence of RFM seems to rest on some misconceptions, which I want to address today.
Continue reading “RFM: Not a substitute for predictive modeling by Kevin Macdonell”