The analysis needs to be repeated, as consumers can move from one segment to another. The frequency depends on the specifics of the niche, product characteristics and the activity of the customer base. It is quite obvious that the behavior of visitors to online stores of everyday goods will differ from the behavior of buyers of expensive cars. The more often customers make purchases of a certain product, the more often the RFM parameters should be analyzed. On average, it is recommended to conduct the study once or twice a year.
Among all RFM analysis criteria, the recency of purchases plays the most important role. The longer a person does not make an order, the higher the probability that he will switch to competitors. It is quite difficult to restore a lost client, so it is more expedient to remind him of yourself in a timely manner. It is recommended to conduct an analysis of the recency of purchases approximately once or twice per season.
Frequently Asked Questions about RFM Analysis
Now you know what RFM chinese singapore b2c cell phone number data analysis is. It is important to remember that it is just one of many tools for target audience research in marketing. Its advantage is that it allows you to save money and time without losing the accuracy of the results. This is especially important in the B2C sphere, when the customer base is several thousand people.
How does Pareto's law relate to RFM analysis?
RFM analysis is based on the Pareto principle, which states that 80% of the time spent on a particular activity produces only 20% of the results, while 20% of the effort produces 80% of the results. This method is also applicable in the marketing environment, where 80% of sales are often generated by 20% of the customers.
Who should perform the analysis?
Analysis using RFM methodology can be performed by various specialists, including Internet marketers and company managers. At the same time, the analytical report can also be used to organize mailings.
Is it possible to carry out the analysis exclusively in automatic mode?
Many modern CRM systems have functionality that allows continuous analysis of the client base using the RFM method. However, in most cases, standard functions require manual control and intervention of specialists. Therefore, the most effective approach is when employees export a pre-prepared client base and work with it according to the created algorithms.