RFM

Business & Finance abbreviation · Marketing & Advertising

RFM
Stands forRecency, frequency, monetary value
CategoriesBusiness & Finance

RFM stands for Recency, frequency, monetary value, a marketing & advertising abbreviation.

Customer segmentation method scoring each customer on how recently they bought, how often they buy and how much they spend, then grouping them, for example into champions, loyal, at-risk and lapsed, to target retention and win-back offers.

Example: The RFM model showed 12% of customers drive over half our revenue.

Usage notes

RFM originated in catalog and direct mail marketing, where it decided who received the next mailing. It is simple to compute from transaction data and remains a common starting point before predictive lifetime value models.

More marketing & advertising abbreviations

  • PMP – Private marketplace
  • POD – Point of difference
  • POP – Point of purchase
  • PPC – Pay-per-click
  • PQL – Product-qualified lead
  • PR – Public relations
  • ROAS – Return on ad spend
  • ROMI – Return on marketing investment
  • RPM – Revenue per mille
  • RTB – Real-time bidding
  • SAL – Sales-accepted lead
  • SEA – Search engine advertising

See all 111 marketing & advertising abbreviations →

Edited by the AbbreviationList.com team. Spotted an error or a missing meaning? Contact us.