How RFM analysis helps to accurately target audiences and discover marketing opportunities and pain points

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After realizing the inseparable relationship between RFM and LTV, we understand the importance of RFM to customer lifetime value. In other words, if a company wants to increase customer (lifetime) value and create good CRM results, it must use RFM segmentation to point out the company's current customer group structure and analyze what pain points and opportunities it faces in each customer group. Only then can you take the next step. Next, let us take a look at the high and low levels of the three indicators R, F, and M in order to see what opportunities and pain points they represent respectively.

Reciprocity​Sleeper
Low Recency means that the last consumption was a long time ago. In marketing and CRM terms, low-recency consumers are also called "sleepers." Sleepers may not interact with the brand for a long time due iran whatsapp phone number to various reasons, which is a pity for the brand. Therefore, the brand needs to understand the reasons why consumers are asleep, and attract sleepers to repurchase in a way that is not overly disturbing and has incentives.

R ecencyactive customer
A high Recency means that the customer's last purchase was recent. It also means that the customer has a favorable impression of the brand recently, and the brand has the opportunity to take advantage of the trend. Customers with high Recency are also called "active customers". Brands should try to increase the proportion of active customers and reduce the proportion of dormant customers to achieve a healthier customer structure and maintain a better brand image.

F requencyrare visitor
Low Frequency means that customers do not consume frequently. However, infrequent consumption does not mean that there is no potential for frequent consumption. If the brand's proportion of rare customers is too high and the proportion of regular customers is too low, it may lack a stable source of revenue and have an unhealthy customer structure.