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RFM-Timeless Segmentation
I started toying with RFM in the mid-80’s. The IBM PC entered the world and I learned how to use Visicalc and Lotus 1,2,3. With widespread computing came the possibility of the marketing dept. getting one. I remember stopping in Yankton, SD at the Gurnee Seed & Nursery Catalog. They weren’t doing any segmentation, keeping…
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Action Streams by Kevin Hillstrom
It’s the concept of taking action with a stream of marketing activities designed to capitalize on a positive customer action. Here’s some actual data. The table in this post is for one-time buyers. The rows represent months since last purchase, the two columns show the probability of a customer purchasing in the next month given…
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Customer segmentation using RFM
By Prasad Nehe LinkedIn RFM analysis is a technique used in marketing and customer analytics to segment customers based on their past purchasing behavior. RFM stands for Recency, Frequency, and Monetary value, which are three key metrics used to evaluate customer engagement and profitability. Here’s how RFM analysis works and its use in marketing: 1. Recency (R):…