RFM Clients Segments is an advanced customer segmentation system available in the Segments Library, which categorizes customers based on their purchasing behaviors using the RFM (Recency, Frequency, Monetary) methodology.
Segment Definition
The RFM Clients Segments divides customers into 10 predefined groups based on three key indicators, with values assigned from 1 to 5:
Recency Score - how recently the customer made a purchase
Frequency Score - how often the customer makes purchases
Monetary Score - what value the customer's purchases generate
The system automatically assigns customers to appropriate segments based on the combination of these three parameters according to predefined rules.
Predefined RFM Segments
Champions (Recency 5, Frequency 5, Monetary 5) - The most valuable customers who have made purchases recently, buy frequently, and spend significant amounts. Active brand enthusiasts who regularly return and generate high revenue.
Loyal Customers (Recency 4-5, Frequency 4-5, Monetary 3-5) - Regular customers with high purchase frequency and good order value. They don't always spend the most but return regularly and form a solid customer base.
Potential Loyalists (Recency 4-5, Frequency 3-4, Monetary 2-4) - Recently active customers with growing purchase frequency. They show potential to become loyal customers with proper relationship nurturing.
New Customers (Recency 5, Frequency 1-2, Monetary 1-2) - New customers who are just beginning their journey with the brand. They made a purchase very recently but have low frequency and purchase value due to their short history.
Promising Customers (Recency 4, Frequency 2-3, Monetary 1-2) - Customers who show interest by purchasing relatively recently with moderate frequency. They spend less but have development potential.
At Risk (Recency 2-3, Frequency 3-5, Monetary 3-5) - Previously loyal customers who haven't purchased for some time. Historically, they demonstrated high value and purchase frequency, but their activity is beginning to decline.
Slipping Champions (Recency 1-2, Frequency 4-5, Monetary 4-5) - Former Champions who have stopped buying. Historically very valuable customers with high frequency and purchase value, whose activity has significantly decreased.
Hibernating (Recency 1-2, Frequency 1-2, Monetary 1-2) - Inactive customers who previously bought rarely and spent little. They haven't made a purchase for a long time and have low overall value for the business.
Lost (Recency 1, Frequency 1, Monetary 1) - Customers who have likely permanently left. Lowest scores in all RFM categories – it's been a very long time since their last purchase, they bought rarely, and spent little.
Others - Customers who don't fit into any of the above segments and may require individual analysis.
Segment Configuration
The system assigns customers to the listed segments by default based on predefined rules. It's possible to customize:
Score thresholds for individual Recency, Frequency, and Monetary categories
Definitions of individual segments
Creation of custom, non-standard RFM segments tailored to specific business needs
Use Cases
RFM Clients Segments can be used for:
Creating personalized marketing strategies for different customer groups
Identifying high-value customers who require retention
Detecting customers at risk of churning and planning reactivation activities
Optimizing marketing expenses by focusing on the most valuable segments
Increasing cart value through targeted cross-sell and up-sell campaigns
The segment is available in the Segments Library > Clients > RFM Clients Segments section of the segments library, along with other predefined segments for customers.