Category — RFM

Cross channel shoppers have the reputation for being the most profitable customers. The facts seem to support this. After all, they shop more often and spend more money than their single channel counterparts do. Using RFM (recency, frequency, monetary) metrics, multichannel buyers are always the best.

This may be an illusion created by outdated analytics and traditional views of customer value. Multichannel customers are very sophisticated shoppers. They search the Internet for the best prices and coupons before making a purchase. This means that the margins on their orders are less. They are also less likely to be loyal, long-term buyers because their primary motivation is price. [Read more →]

RFM (recency, frequency, monetary value) is a staple in multichannel marketers’ analytics tools. It has been around for decades because it works. And, when something works, little is done to change it.

But, what if you could make it work even better by adding information? When the RFM methodology was created, we didn’t have sophisticated data management systems or user-friendly analytic tools. We do, now. Let’s use them to improve the return on our marketing campaigns. [Read more →]