How do you apply RFM within RetailVista?

RFM stands for Recency, Frequency, Money and is a globally accepted method for calculating which segments customers fall into. In the standard RFM setup, customers are divided into 5 segments, ranging from customers you need to 'cherish' the most, to customers you have already lost. 

The following shows the RFM model:

The RFM analysis helps you find answers to the following questions:

- Who are your best customers?

- Which of your customers can contribute to your churn rate?

- Who has the potential to become a valuable customer?

- Which of your customers can be retained?

- Which of your customers are most likely to respond to engagement campaigns?

In relationship maintenance, the calculated RFM segment is visible for each customer.

RFM segments can be linked to all known promotional systems of RetailVista.

This has been made possible by assigning RFM segments to discount agreements.

In the various relationship exports, filtering can now also be done based on RFM segment, and the assigned RFM segment is also exported as a column.

Make sure you have/obtain the following license:

Based on the RFM model, you can set up the segments within RetailVista.

Enter the search term "RFM Segments" in the quick navigation on the left side of the screen to access the screen where RFM segments can be created.

The following image shows an example of what this looks like:

The example below shows an example of segment 1 "Sleeping customers":

Settings for RFM

In the setting "RfmCalculationPeriodMonths", specify the number of months over which the calculation should take place.

In the setting "RfmSegmentChangeDelayDays", indicate how many days can be waited before a user can be switched from segment.

A task must also be created for the calculation of RFM: