RFE

RFE may mean:

RFM (customer value)

RFM is a method used for analyzing customer value. It is commonly used in database marketing and direct marketing and has received particular attention in retail and professional services industries.

RFM stands for

Most businesses will keep data about customer purchases. All that is needed is a table with the customer name, date of purchase and purchase value. One methodology is to assign a scale of 1 to 10, whereby 10 is the maximum value and to stipulate the a formula by which the data suits the scale. For example in a service based business you could have:

Alternatively, one can create categories for each attribute. For instance, the Recency attribute might be broken into three categories: customers with purchases within the last 90 days; between 91 and 365 days; and longer than 365 days. Such categories may be arrived at by applying business rules, or using a data mining technique, such as CHAID, to find meaningful breaks.