What is RFM Segmentation?
RFM Segmentation stands for Recency, Frequency, Monetary Segmentation. It is when you implement a marketing strategy using the segments from an RFM Analysis. RFM covers 1) how many days since a customer purchased (recency), 2) how frequently they purchase (frequency), and 3) how much they spent (monetary).
Here's Dan LeBlanc, CEO of Daasity, for more on RFM Segmentation:
RFM Segmentation is a useful technique to implement for a Customer Profitability Analysis, which you can read about here.