RFM Analysis

RFM analysis (Recency, Frequency, and Monetary Value) allows for precise and up-to-date segmentation of all contacts based on their purchasing behavior over time. This segmentation can be immediately used to launch the right campaigns for each contact, and also to make predictions that optimize results (increased conversion, reduced costs, and higher returns).

 

1. Properties

1.1. General

RFM analysis is based on three concepts:

• Recency assesses the time since the last purchase.
• Frequency assesses the total number of purchases.
• Monetary Value assesses the average amount spent on purchases.

Each RFM parameter is assigned an integer value between 1 and 5, with 5 being the highest score.

 

1.2. Contact Fields

RFM analysis uses 4 new contact fields to store information related to each user in their profile. Their characteristics are as follows:

• RFM fields are system fields created when Connectif is integrated, and reserved, meaning they cannot be edited.
• All RFM fields are of the radio type, meaning they can only have one of the defined values.
• Connectif automatically recalculates RFM fields once a day (at 01:00 UTC).

 

1.3. RFM Segments

To facilitate RFM analysis, Connectif groups the 125 possible score combinations into 11 manageable and understandable segments, based on the purchasing behavior they describe.

The RFM groupings that Connectif automatically generates are as follows:

 

RFM Segment	Behavior	Recommended Strategies	RFM Values
Champions	Recent purchase, buys often, and spends a lot	Reward them. They can promote your brand. Early adopters.	555, 554, 545, 544, 455, 454, 445
Loyal Customers	Buys regularly. Responds to promotions.	Offer them higher-value products. Ask them to write reviews. Engage with them.	543, 444, 435, 355, 354, 345, 344, 335
Potential Loyalists	Recent customers, but their spending is significant and they have purchased more than once.	Use loyalty and retention strategies and recommend other products.	553, 552, 551, 542, 541, 533, 532, 531, 453, 452, 451, 442, 441, 431, 433, 432, 423, 353, 352, 351, 342, 341, 333, 323
New Customers	Very recent purchase, but infrequent.	Provide support to help them onboard, assist them in achieving their goals, and start building the relationship.	512, 511, 422, 421 412, 411, 311
Promising	Recent buyers but haven't spent much yet.	Familiarize them with the brand, offer coupons or freebies. Keep them engaged by encouraging return visits.	525, 524, 523, 522, 521, 515, 514, 513, 425, 424, 415, 414, 413, 315, 314, 313
Needs Attention	Above average in Recency, Frequency, and Monetary Value. However, they haven't purchased in a while.	Make them temporary or limited offers. Recommend products based on previous purchases. Reactivate them.	535, 534, 443, 434, 343, 334, 325, 324
About to Sleep	Below average in Recency, Frequency, and Monetary Value. If not reactivated, they will be lost.	Share valuable content with them. Recommend popular or new products with discounts. Reconnect with them.	331, 321, 312, 221, 213
At Risk	Spent a lot and often, but their last purchase was a long time ago. Bring them back!	Send personalized emails to re-establish the relationship, offer renewals, and provide useful content.	255, 254, 253, 252, 245, 244, 243, 242, 235, 234, 225, 224, 153, 152, 145, 143, 142, 135, 134, 133, 125, 124
Can't Lose Them	Once made the largest purchases, but haven't returned in a long time.	Get them back with renewals and new products. Don't let the competition take them, engage with them.	215, 214, 155, 154, 144, 115, 114, 113
Hibernating	Their last purchase was a long time ago. They spent little and made few orders.	Offer other relevant products and special discounts. Create brand value.	332, 322, 251, 241, 233, 232, 231, 223, 222, 212, 211, 132, 123, 122
Lost	The lowest scores in Recency, Frequency, and Monetary Value.	Rekindle interest with broad-reaching campaigns. Ignore them in other strategies.	151, 141, 131, 121, 112, 111

 

2. How to Use in Connectif

2.1. Checking RFM Fields

1. Go to "Contacts > Contact fields" and locate the field you want to check. If necessary, filter the fields or search for the term "RFM".

2. Click  View.

3. Click  Cancel to exit the contact field detail view.

 

2.2. Viewing RFM Results in Contact Profiles

1. Go to "Contacts > Segments" and search or filter to find the contact you want to view.

2. Once found, click  (Details) to access the contact's profile.

3. View the values assigned to the contact in the analysis and the corresponding RFM segment.

 

2.3. Dynamic Segmentation of Contacts Using RFM Parameters

1. Go to "Contacts > Segments" and click  Create new segment.

2. Under Type, select Dynamic.

3. Click  Go to segment editor.

4. Under Name, set a title to identify your segment.

5. (Optional) Under Description, add additional information about your contact group.

6. In the default filter, set the desired conditions for Connectif to distinguish which contacts should (or should not) belong to the group.

7. (Optional) Click  Add another condition if additional segmentation conditions are necessary.

8. Click  Save to create the segment.

 

2.4. Exporting Contacts by Their RFM

1. Go to "Contacts > View all" and click  Export.

2. Drag the "Contacts" block to the right side box or click  (Add) to export the contact information fields. Click Next  .

3. In Select data source, click  Add another condition to filter the contacts to be exported based on their RFM parameters or segmentation.

4. Click Next  .

5. Configure the next two steps, Select contact fields and Output format, according to your goal and preferences.

6. Click Start export  .

 

2.5. Exporting RFM Data of Contacts

1. Go to "Contacts > View all" and click  Export

2. Drag the "Contacts" block to the right side box or click  (Add) to export the contact information fields. Click Next  .

3. (Optional) In Select data source, filter the contacts to be exported.

4. Click Next  .

5. In Select contact fields, check those that you want to export along with the RFM data of the contacts. Click Next  .

6. Configure the Output format according to your preferences.

7. Click Start export  .

 

2.6. Workflows

Node "Has Field"

1. Click  (Edit node settings) in the "Has Field" node.

2. In Settings, use the contact's RFM fields to define a condition based on the RFM values of each user.

3. Click  Update.

 

Node "Check Value"

1. Click  (Edit node settings) in the "Check Value" node.

2. In Settings, use the contact's RFM fields to check the data collected by previous nodes.

3. Click  Update.

 

 Node "Set Field"

1. Click  (Edit node settings) in the "Set Field" node.

2. In Settings, use the contact's RFM field values to modify or assign them to other contact fields.

3. Click  Update.

 

 

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Keep Learning!

To fully leverage your Connectif account, we recommend continuing with the following articles:

• Preferred Access, to send an email to your most valuable contacts before anyone else.
• Upselling at Checkout, to offer higher-value products to your most loyal contacts.
• Coupon After Purchase, to retain promising contacts and get them back to your eCommerce.
• Interest Reactivation, to reactivate contacts who need attention with personalized recommendations.