RFM, Recency, Frequency, Monetary analysis is a technique used to determine which customers are likely to respond to a new offer by examining the following:
- Recency - How recently did the customer purchase?
- Frequency - How often do they purchase?
- Monetary Value - How much do they spend?
The RFM analysis will assign a 3 digit score from 111 to 555 to each customer visible in PSCUM.CRM customer grid. The best score being 555, meaning that the customer purchased most recently, most frequently and at the highest monetary value.
Table of Contents
Where Is It Found
Steps to Calculate RFM
Step 1: PSCUM.CRM Advanced Search
After opening menu option PSCUM.CRM Customer Management select Advanced Search on the far right of the screen.
Within the Advanced Search select SALES HISTORY at the bottom of the screen.
In Section 1 we will use the first drop down to "Select customers that". In the second drop down use "Purchased". Next, enter the date range of sales you want included in the calculation. In this example we used the current year to date. The final step on this screen is to check the box at the bottom of Section 1 to "Calculate (R)ecency, (F)requency, (M)onetary Score". Then select DONE in the bottom right corner.
Once completing the above Advanced Search Refresh the CRM screen to pull up all qualifying customers.
