Receiving constant emails and notifications from a business can cause the opposite effect of the intended outcome. From time to time, these notifications can serve to remind and encourage your customers to come back.


It can be hard to know how often to reach out to customers and create balance between being too pushy and bringing attention back to your business. Customers can be unpredictable and have a range of shopping styles.When you uncover behavioral patterns of customers you can use that information to effectively apply marketing strategies and uniquely target customers with the right messages at the right time .


Push notification can be a very helpful marketing strategy if used properly.If notifications are sent too often customers will mute them or opt out.


The amount of notifications as well as the context of these messages are normally not customized to match the customers needs. Understanding your customers better will aid you in creating personal push notifications and marketing strategies to be most effective.


Recency, Frequency, Monetary Analysis (or RFM) is a database marketing tool used to automatically analyze your customers behaviors, and orders them into the most valuable to least valuable.


Customers are ranked based on the recency of their purchase, amount of time they come in, and the amount of money they are spending. These scores allow you to effectively target customers.


Let’s say your RFM analysis shows a particular customer segment has a high Monetary Value score, because they make large purchases every time they visit your store, but low Frequency score because they only come once a year. You now know you need a strategy that gets these “high rollers” to visit your store more often each year, and you could target this audience segment with an offer to for special premium coupons giving them a notable discount once a quarter, for example.


Loyal customers may not need frequent reminders and notifications, with the RFM scores you’re able to differentiate between these customers.


If the RFM notices a recent and frequent customer who may not spend much money, it will display these metrics and help you as a business owner know to target these customers to encourage them to spend more on each trip.


Being able to customize the approach you take towards your customers makes RFM a valuable tool to your business.RFM scores will also benefit the customers, they no longer will receive unnecessary notifications that do not apply to them. Investing in RFM for your business creates loyal and happy customers who will continue to return.
Each one of your customers is a unique individual with personalized spending habits. Some customers will order a large quantity at once, while others purchase smaller quantities more often. Marketing towards these two customers would need to be approached in different ways.


RFM (Recency, Frequency, Monetary value) analysis is the tool that measures the data of your customers purchases to evaluate their patterns and sort them based on the three factors.


  • Recency is how recently a customer made a purchase
  • Frequency is how often they purchase
  • Monetary value relates to the amount of money the customer spends
Together, these data points can predict the likelihood a customer will return. This data helps you make optimal marketing decisions. Knowing how much revenue comes from new vs returning customers can give you the information you need to know to be able to turn occasional buyers into regulars.


RFM works by analyzing your company’s CDP, scoring each customer on a scale in each of the three categories. So, for example, depending on the purchase cycle of your company’s product or service you might evaluate customers for recency on a scale of 1-5, with a score of 5 indicating the customer had made a purchase from your company within the last week, and a score of 1 indicating that their last purchase was 10-12 months prior.


Evaluating each category together can give you a clear picture as to where to put your money and energy in your marketing strategies. Recent customers could help as an example of what is doing well that keeps them coming back. Regular customers do not need as constant of notifications as infrequent shoppers.


Unnecessary reminders can serve the opposite effect. Customers who may have a low monetary value score could be sent incentives and deals to encourage them to buy more products.


RFM analysis is based on the marketing axiom that “80% of your business comes from 20% of your customers. Most commonly RFM analysis measures customers based on the scale of 1-5 with ‘555’ being the most ideal customer. Certain deals may work better for these high rating customers than the low rated ones. Unique marketing strategies to fit your customers behaviors creates a better response rate.