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Analytics:

RFM Analysis

There are many reports that provide useful information about customer activity. Recency, frequency, and monetary RFM statistics are proven indicators of repeat buying patterns. Recency indicates how long since the last purchase. Frequency is the number of transactions that customer has had. Monetary is how much money the person is spending. These data elements can be defined over different time frames, such as year-to-date, lat 12 months, or lifetime.

For below reports are examples of RFM reports. These reports can be developed on all customers, or as part of a response analysis for the last mailing.

Frequency 0-1 Mo 2-3 Mo 4-6 Mo 7-12 Mo Prior Total
0 4,333 2,687 3,367 1,515 55 11,957
1 7,723 2,424 2,406 755 155 13,463
2 8,442 1,712 720 1,113 459 12,446
3 9,953 5,534 1,477 1,192 888 19,044
4 15,154 7,255 2,832 2,850 1,335 29,426
5 23,122 19,199 15,155 7,844 4,455 69,775
6 35,688 21,081 15,702 10,504 5,678 88,653
7+ 42,004 33,656 15,594 12,125 6,200 109,579
Total 146,419 93,548 57,253 37,898 19,225 354,343
Monetary 0-1 Mo 2-3 Mo 4-6 Mo 7-12 Mo Prior Total
$0 3,988 2,694 3,360 1,112 42 11,196
$1-$24 6,725 2,417 2,413 855 185 12,595
$25-$49 9,559 1,711 850 1,432 632 14,184
$50-$74 10,054 5,535 1,347 1,503 912 19,351
$75-$99 14,139 7,201 2,930 2,643 1,212 28,125
$100-$124 24,155 19,253 14,180 7,300 3,455 68,343
$125-$149 36,888 1,090 15,555 10,499 5,435 89,467
$150+ 40,911 33,647 16,618 12,554 7,352 111,082
Total 146,419 93,548 57,253 37,898 19,225 354,343
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