What is RFM and how is it used in Icomm?
RFM (Recency, Frequency, Monetary) is an advanced segmentation technique used at Icomm to measure and analyze customer activity. This technique allows you to identify behavioral patterns and classify customers based on three key variables:
Recency (R): Measures the time elapsed since the customer's last purchase or interaction with the brand.
Frequency (F): Indicates the number of times the customer has made purchases or interactions in a given period.
Monetary (M): Represents the total monetary value of the purchases or transactions made by the customer.
In Icomm, these three variables are calculated and measured for a specific period, and they are assigned a value between 1 and 5 (quintiles). Based on the analysis of these values, 125 different segments are determined that allow the audience to be classified accurately.
Segments with a higher RFM (e.g., 444 or higher) are considered the most loyal and valuable customers because they make purchases more frequently, their purchases are recent, and they have significant monetary value. On the other hand, segments with a lower RFM (e.g., less than 333) represent customers who do not purchase as frequently, their last purchase was not recent, and the value of their purchases is typically low.
RFM segmentation in Icomm allows you to generate virtual customer profiles, which facilitates the creation of personalized and specific marketing campaigns for each segment. In this way, each customer group can be effectively impacted with communications and offers adapted to their behavior patterns and preferences.
In addition to segmentation, RFM analysis can also be used to identify customer retention and loyalty opportunities, as well as to design reactivation strategies for inactive or low-value customers.
In short, RFM is a technique that allows you to accurately segment customers, optimize marketing strategies and improve customer experience through personalized and relevant communications and offers.
Consult other topics of interest: Omnichannel Dashboard Guide
Recency (R): Measures the time elapsed since the customer's last purchase or interaction with the brand.
Frequency (F): Indicates the number of times the customer has made purchases or interactions in a given period.
Monetary (M): Represents the total monetary value of the purchases or transactions made by the customer.
In Icomm, these three variables are calculated and measured for a specific period, and they are assigned a value between 1 and 5 (quintiles). Based on the analysis of these values, 125 different segments are determined that allow the audience to be classified accurately.
Segments with a higher RFM (e.g., 444 or higher) are considered the most loyal and valuable customers because they make purchases more frequently, their purchases are recent, and they have significant monetary value. On the other hand, segments with a lower RFM (e.g., less than 333) represent customers who do not purchase as frequently, their last purchase was not recent, and the value of their purchases is typically low.
RFM segmentation in Icomm allows you to generate virtual customer profiles, which facilitates the creation of personalized and specific marketing campaigns for each segment. In this way, each customer group can be effectively impacted with communications and offers adapted to their behavior patterns and preferences.
In addition to segmentation, RFM analysis can also be used to identify customer retention and loyalty opportunities, as well as to design reactivation strategies for inactive or low-value customers.
In short, RFM is a technique that allows you to accurately segment customers, optimize marketing strategies and improve customer experience through personalized and relevant communications and offers.
Consult other topics of interest: Omnichannel Dashboard Guide
Updated on: 04/29/2024
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