RECENCY, FREQUENCY, MONETARY VALUE - RFM
A marketing analysis tool which is used to identify the best customers of a firm by measuring certain factors. The RFM model is based on three quantitative factors:
Recency - How recently a customer has made a purchase
Frequency - How often a customer makes a purchase
Monetary Value - How much money a customer spends on purchases
RFM analysis often supports the marketing adage that "80% of business comes from 20% of the customers.
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