RFM (recency, frequency, monetary) is an established marketing segmentation technique that allows you to identify your best (and worst) performing customers. Customers are assigned a 1-5 value for recency based on their last order date, frequency based on how many orders they have placed, and monetary based on how much they have spent on your site in total, and then this combined score (recency * frequency * monetary) is used to generate an overall RFM score of 1 - 125 for each customer. For a complete overview of our RFM segmentation reports, please see our in depth video guide below:
To generate RFM reports, the first step is to generate boundaries based on your order data for recency, frequency and monetary. RFM Calc will precisely and automatically generate these boundaries for you:
Using the total RFM score (recency x frequency x monetary), RFM Calc will segment your customers into 5 separate segments, S1 (worst customers) to S5 (best customers):
We'll generate key insights for these RFM segments, including visual monthly revenue and overall revenue by segment charts:
As well as generating data around our standard RFM segments (available on all account plans, even free), users on our Medium plan or above can generate powerful custom RFM segments. These can be defined easily on a per project basis for any project:
We'll then report key data for your custom segments and show monthly and overall revenue for each custom segment too:
Remember, RFM Calc offers incredible flexibility when generating ecommerce reports, so you can change your custom RFM segments at any time.
Our core RFM reports are available on all our account plans, even our free plan. Simply click the button below to sign up today and start generating incredible RFM segmentation reports for literally any ecommerce store (including Shopify, Magento, WooCommerce and more).