RFM Model

The RFM model is a strategy businesses use to understand and prioritize their customers. It looks at three key factors: Recency (how recently a customer made a purchase), Frequency (how often they buy), and Monetary value (how much they spend). By analyzing these, companies can identify which customers are most valuable and likely to respond to offers or promotions. This helps tailor marketing efforts, improve customer engagement, and optimize resources, leading to better relationships and increased sales.