Assign an RFM number to each client

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Unique client ID. For convenience, you can immediately save his full name, phone number and email. This data will be useful for communications.
Date of last purchase. The number of days since that moment is the Recency indicator.
The total number of purchases a customer made during a period is Frequency.
Total amount of all purchases for the same period . Divide the amount by the quantity and get the average customer check - this is Monetary.
The period for which you need to consider marketing data depends on the purchase cycle. For example, for a hair salon, you can analyze customers for 1-2 years, and for a clothing store - those who bought within 5 years.


The first step is to fill in the table with customer data.
Step 2: Define segment boundaries
For each indicator - Recency, Frequency, Monetary - you need to set segment boundaries. What you will consider low, average and high values.

There are no universal values, they depend on the industry and business specifics. For example, with a hairdresser, a low check is spending 500 rubles, a high one is 5,000. A long order is more than 12 months old, a short one is 1 month. A client contacts you often if he/she came more than 4 times a year.

Each indicator level is assigned a number, with 1 being a “bad” value for the business, such as a small average check, and 3 being “good.”


The second step is to determine which range you will consider to be a “bad” value paraguay phone number list and which one you will consider to be a “good” value.
Step 3. As a result of the analysis, each client should receive an assessment on all three parameters. Then, based on these assessments, the buyer is assigned to one of 27 segments.

For example, if Recency is 1, Frequency is 2, and Monetary is 3, then the RFM group number is 123.
This segment designation is very clear: it shows how valuable the user is to the company. For example, clients from group 333 are the most active and regular buyers with a large average check. And people from segment 111 bought once, a long time ago and for a small amount.

Add the RFM group number to your Excel or Google Sheets file and estimate the size of the different segments. You will then need to develop an action plan for each of them. Update the data regularly and make sure that as few people as possible fall into the “sleeping” or “gone” category.


The first digit of the number is the purchase date, the second is how often the customer contacts you, and the third is the average bill.
How to choose a work strategy
Now you know which category each customer in your database belongs to, and you can take action to retain or reactivate them. The strategy depends on the person’s purchasing activity and the value they represent for the company.