Retail & E-commerce / Customer Analytics
RFM Segmentation RFM
Ranking customers by how recently, how often, and how much they buy.
The fork, why two teams get different numbers
RFM is three scores concatenated, but how each score is CUT is the fork.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Database-marketing RFM convention (reference)