As expected, the RFM marketing matrix is an analysis model that allows to identify the best potential customers for the company, thanks to the combination of three different variables.
Recency: indicates the time elapsed since the last purchase
;
Frequency: Indicates the number of times the user made a purchase within a given period (usually 1 year) ;
Monetary: Total customer spending during the reporting period.
This model is based on the Pareto theory , according to which 80% of turnover is germany cell phone number list generated by 20% of customers and is based on taking into account three fundamental hypotheses:
Customers who have purchased more recently tend to be more likely to purchase than those who have not purchased in a long time;
Customers who buy more often are more likely to buy again than those who only buy once;
Customers who spend more are more willing to buy again
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From this first introduction to the RFM model, it is possible to understand the potential of this analysis as a tool for creating e-commerce segments: users with higher RFM scores will be our best customers, those on whom it is worth investing time and energy .
But let's delve even deeper into the subject
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