RFM segmentation
Definition
RFM segmentation groups customers by how recently they purchased, how often they purchase, and how much they spend — producing behavioural segments that predict response better than demographics.
Its strength is that it uses only transactional data every business already has, and it maps directly to action: recent frequent high-spenders get retention and advocacy programmes, lapsing high-value customers get win-back, and low-value one-time buyers get automation rather than attention.
It is most powerful when combined with a churn or next-purchase prediction, so intervention happens before a valuable customer lapses rather than after.
Definitions are free.So is the audit.
Thirty minutes on a call, then a written 5-page plan inside 72 hours showing where this actually applies in your funnel — and what it is worth fixing first.