Regular Post
Written by Joe Paradiso

RFM Segmentation (Recency, Frequency, Monetary)

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RFM segmentation categorizes customers based on how recently they purchased, how often they purchase, and how much they spend.

  • Use cases:
    • Identify VIPs for early access and premium experiences.
    • Detect early churn signals among historically valuable customers.
    • Tailor messaging—for example, “reactivation” offers for low-recency segments vs. “loyalty” programs for high-frequency segments.
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