asked 222k views
5 votes
Why does the “rfm” rubric present the three key measures (recency, frequency, and monetary value) in that order?

1 Answer

3 votes

The order of the attributes in RFM conforms to the order of their importance in ranking customers. Recency is the most important factor. Recency alone won’t sort out your good customers from your new ones. You need frequency for that. Frequency measures the intensity of a customer’s relationship with your business. How much a customer spends on average or in total is the final measure of his or her monetary value.

answered
User Mariano Ruiz
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