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.
- Order Amount
- Response Probability
- Direct Marketing
- Direct Mail
- Average Response Rate
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© 2008 Springer Science+Business Media, LLC
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Blattberg, R.C., Kim, BD., Neslin, S.A. (2008). RFM Analysis. In: Database Marketing. International Series in Quantitative Marketing, vol 18. Springer, New York, NY. https://doi.org/10.1007/978-0-387-72579-6_12
Publisher Name: Springer, New York, NY
Print ISBN: 978-0-387-72578-9
Online ISBN: 978-0-387-72579-6