Recency, Frequency and Monetary Analysis (RFM) is a technique for discovering how to structure your digital marketing campaign to get the best ROI. By analysing marketing and sales data, for example sends, opens, clicks and items purchased, we can identify:
• The optimum number of marketing campaigns to send
• How often to send them
• How many different types of campaign to send
This information can also be combined with customer profiles to create tailored marketing campaigns.
The result is a marketing strategy geared towards creating the highest possible level of engagement and sales.
How does it work?
Our data scientists and consultants begin by analysing your data:
• Campaign type
• Customer data
• Engagement history – opens, link clicks
• Sales data
We then apply our award-winning proprietary data science technique to reveal:
• Recency – how recent was the last customer purchase or engagement
• Frequency – how often do they purchase or engage
• Monetary Value – how much do they spend
What is my ROI?
Unlike generic ‘best practice’ advice on how frequently to send marketing campaigns, RFM allows you to create a marketing strategy tailored to your customers and products or services. A change in engagement will be recorded immediately when you apply the RFM insights. Which means you can create a direct link between using RFM and an increase in engagement and sales.