What RFM analysis is

RFM sorts customers by three facts about their behaviour:

  • Recency: how long since they last bought.
  • Frequency: how often they buy.
  • Monetary: how much they spend.

Each customer gets a score on each. Combined, the scores place them in a segment. A customer who came yesterday, comes weekly and spends a lot is a Champion. One who used to come often but hasn't been back in two months is At risk.

Read the full RFM analysis guide for how to score by hand.

How Selyo does it

Selyo calculates recency and frequency from actual visits recorded at your counter, and ranks monetary value within your own business, so a small bakery isn't compared with a supermarket. The scores refresh every hour.

What to do with each segment

SegmentTypical action
ChampionsReward and recognise. Ask for referrals and reviews.
LoyalOffer VIP tiers or a membership.
Potential loyalistsNudge toward a habit with a bonus on the next visit.
NewMake visit two easy.
At riskWin-back message with a time-limited reason to return.
Can't losePersonal outreach. These were your best customers.
Hibernating / LostOne clear offer, then stop spending on them.

Why it beats guessing

Owners usually know their top five regulars. RFM shows the next fifty, and, more usefully, who is quietly drifting away while there is still time to bring them back.