A company can implement RFM (Recency, Frequency, Monetary) analysis in their customer relationship management by first understanding the RFM framework. This involves scoring customers based on the recency of their engagement (X-axis), and the frequency of their purchases or engagement (Y-axis). A score of 1 represents low frequency or recency, while a score of 5 represents high frequency or recency. Once the scoring system is understood, the company can then categorize their customers based on these scores and tailor their marketing and sales strategies accordingly. This allows the company to prioritize their efforts towards customers who are more likely to engage and make purchases, thereby improving their customer relationship management.
What’s the best way to showcase and assess a business idea? Customize our Business Model Canvas to c...
Download template