A customer segmentation method that ranks customers by Recency (how recently they purchased), Frequency (how often they purchase), and Monetary value (how much they have spent).
RFM scoring is the foundation of data-driven D2C segmentation. Each dimension is scored 1-5, creating 125 possible segments. Most useful D2C segments: Champions (5-5-5, most recent + frequent + high value), Loyal Customers (4-5-4), At Risk (2-5-4, used to be loyal but declining), and Lost (1-1-1, need win-back). Klaviyo automatically calculates predictive equivalents of RFM through its predictive analytics.
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