Recency, Frequency, Monetary (RFM)
RFM is a way to score customers based on how recently they bought, how often they buy, and how much they spend. It helps you spot your best customers quickly and see who might be slipping away.
Recency, Frequency, Monetary or RFM is a simple way to group customers by behavior. You look at when someone last bought, how often they buy, and how much money they usually spend. Each part gets a score, then you use the combined score to see who is most engaged. It turns a big list of customers into clear segments you can understand.
RFM matters because not every customer should get the same treatment. High scoring customers might get VIP offers or early access, while low scoring customers might get win back messages. This keeps your marketing focused on people who are most likely to respond. It also helps you spend less time guessing and more time running targeted campaigns.
You can start simple with a spreadsheet. Export your orders, sort by last order date, total orders, and total spend, then give each customer a low, medium, or high score for each piece. From there, create a few basic segments and write one clear email for each group. Over time you can refine the scores and add more detail if you need it.
Related Terms
Email Engagement Score(Engagement Score)
A simple score that shows how active a subscriber is with your emails, based on actions like opens, clicks, replies, and purchases. It helps you quickly see who is engaged and who might be slipping away.
Learn more →Customer Lifetime Value (CLV)(CLV)
The total money a customer is expected to spend with your business from their first purchase until they stop buying. It helps you decide how much you can afford to spend to win that customer and keep them coming back.
Learn more →Lead Scoring(Lead Score)
Lead scoring ranks your leads by how interested and ready to buy they seem based on simple scores from their actions. It helps you see warm leads fast so you can focus your time where it makes the most sense.
Learn more →Drip Campaign(Drip Sequence)
A series of pre-written emails that automatically go out over time, like a slow drip from a faucet. You write them once, set the schedule, and they nurture leads on autopilot. Someone signs up today, they get email 1. Three days later, email 2. A week later, email 3. Perfect for welcoming new subscribers, educating prospects, or onboarding customers without lifting a finger.
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