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5 views

Answer

Uploaded by

Takudzwa Madamombe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Certainly! The Recency, Frequency, Monetary Value (RFM) model is a
powerful approach used in marketing to segment and analyze customer
behavior. Let me break it down for you:
1. Recency (R): This factor evaluates how recently a customer made a
purchase. Recent customers are more likely to engage in future
transactions, so businesses often target them to encourage repeat
purchases.
2. Frequency (F): It measures how often a customer buys from a brand.
Frequent buyers are valuable because they contribute to consistent
revenue. Businesses aim to turn occasional buyers into habitual ones.
3. Monetary Value (M): This factor assesses how much money a customer
spends on purchases. High-value customers are crucial for revenue
growth.
The RFM model assigns a score of 1 to 5 (from worst to best) for each
category. By analyzing these scores, businesses can predict which customers
are likely to make future purchases and tailor their marketing efforts
accordingly1 2.
Remember, 80% of business often comes from just 20% of loyal customers! 😊📈
If you have any more questions, feel free to ask! 🌟

Source(s)
1. What Is Recency, Frequency, Monetary Value (RFM) in Marketing?
2. RFM Segmentation, Analysis & Model Marketing | Optimove
3. Unlocking Customer Insights: Guide to the RFM Model

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