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RFM Analysis

  • Robert C. Blattberg
  • Byung-Do Kim
  • Scott A. Neslin
Part of the International Series in Quantitative Marketing book series (ISQM, volume 18)

Abstract

Recency (R), Frequency (F), and Monetary Value (M) are the most popular database marketing metrics used to quantify customer transaction history. Recency is how recently the customer has purchases; frequency is how often the customer purchases, and monetary value is the dollar value of the purchases. RFM analysis classifies customers into groups according to their RFM measures, and relates these classifications to behaviors such as the likelihood of responding to a catalog or other offer. RFM analysis was probably the first “predictive model” used in database marketing. This chapter discusses the RFM framework, how it can be used and various extensions.

Keywords

Order Amount Response Probability Direct Marketing Direct Mail Average Response Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Robert C. Blattberg
    • 1
    • 2
  • Byung-Do Kim
    • 3
  • Scott A. Neslin
    • 4
  1. 1.Kellogg School of ManagementNorthwestern UniversityEvanstonUSA
  2. 2.Tepper School of BusinessCarnegie-Mellon UniversityPittsburghUSA
  3. 3.Graduate School of BusinessSeoul National UniversitySeoulKorea
  4. 4.Tuck School of BusinessDartmouth CollegeHanoverUSA

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