A simple yet powerful model, RFM ranks customers based on how recently they purchased, how often, and how much they spent. Sorger positions RFM as a starting point for personalization – e.g., targeting “champions” (high R, F, M) with loyalty offers and “at-risk” (low R, high F, M) with win-back campaigns.
Identifies specific customer segments using analysis methods to tailor strategies.
Mastering Data-Driven Marketing: An Overview of "Marketing Analytics: Strategic Models and Metrics" by Stephan Sorger A simple yet powerful model, RFM ranks customers
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Sorger categorizes metrics into clear, strategic groups:
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Use regression analysis, cluster modeling, or diffusion curves depending on the strategic goal.