Recency, Frequency and Monetary Value (RFM) Segments
Recency, frequency and monetary value can be predictive indicators of visitor behavior. Creating segments that combine these indicators with behaviors gives you a very precise targeting mechanism.
RFM segments provide answers to questions like these:
- How recently did visitors abandon shopping carts? Seeing the cart abandonment time span, you can send one message or offer to visitors who abandoned a cart yesterday, and another to visitors who abandoned weeks ago.
- How often have visitors logged in? If online banking accounts were opened a month ago, but some visitors have not logged in, you can identify the idle accounts and have a sales representative follow up with those accounts to answer questions or provide a demo.
- How much money have customers spent on your site in a given period? Knowing this, you can offer higher-value services or offers to the customers who have brought in the most revenue.