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Meaning of RFM analysis. What is it: receptiveness to a marketing campaign in order to optimize a.

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Definition RFM analysis

RFM ANALYSIS title: RFM analysis (CRM-ANA) (SAP Library - Glossary)
RFM ANALYSIS category: CRM Analytics (CRM-ANA)
RFM ANALYSIS explained:

An analysis used to reliably indicate a customer's receptiveness to a marketing campaign in order to optimize a campaign.

An RFM uses the following parameters to predict the probability with which a selected group will respond to a campaign:

How long ago a customer made his/her most recent purchase How often a customer makes a purchase How much a customer spends on his/her purchases

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