What is a profitable business strategy? How you can retain your customers? If retention better or acquisition? The answer to all these questions is RFM Analysis – Recency, Frequency, and Monetary.

1. RFM Analysis for Effective
Customer Relationship
Management
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2. RFM stands for ‘Recency, Frequency, Monetary’.
RFM analysis is a marketing technique that
works to analyze customer purchase behavior for
streamlining the process of customer
segmentation.
The outcomes of this analysis empower
businesses and individuals target their
prospective audience.
This also helps to identify customers who are
most likely to respond to marketing tactics and
promotions.
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3. Recency
This is the analysis of how recent a customer
makes a purchase.
Recency value is the number of days from
the last purchase.
Example: If a customer had made the last
purchase 5 days ago, then the recency value
is 5.
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4. Frequency
Frequency is the analysis of how frequently a
customer makes a purchase.
This is the total number of purchase
transactions done over a specific period
of time.
Example: If a customer makes 5 order
over a period, the frequency is 5
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5. Monetary
Monetary value is the analysis of how much a
customer happily spends for his or her
purchases.
Take a sum of all expenditures made over a
specific period of time.
Example: If a customer spends Rs 100, Rs 300,
Rs 500 in three different purchases made over
a specific period, then the monetary value is
Rs 900
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6. Thank You
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PRESENTED BY
MR. SANJAY SINGH, SALES COACH