What does RFM mean in LAW & LEGAL

Recency is a measure of how recently a customer has taken part in an interaction with a company. It helps marketers understand when a customer last interacted with them so they can better target new offers.

Frequency measures how often a customer interacts with a company over some period of time, typically within the past 12 months or so. This can show how deeply loyal customers are to their brand and their level of engagement.

Monetary value looks at the overall amount that each customer has spent on products or services from the company. This provides insights into each customers' potential for long-term revenue with the company if properly nurtured as well as which customers need more attention from marketers.

RFM analysis combines all three components to create an overall picture of each customer's relationship with the business. Customers who have high scores in all three categories (i.e., recent interactions, many interactions, and high spending) are usually ideal candidates for loyalty programs or other promotional offers while those who score low on all three may need more attention from marketers and additional incentives to engage more often.

Companies utilize RFM analysis to better understand their customers' behaviors and attitudes towards their brands in order to strategize targeted marketing campaigns that will yield successful results. By understanding where each individual customer lies on these scales companies can tailor promotions and offers accordingly.