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| | Define RFM analysis - a Whatis.com definition - see also: RFM, recency, frequency, monetary analysis |
 | | RFM (recency, frequency, monetary) analysis is a marketing technique used to determine quantitatively which customers are the best ones by examining how recently a customer has purchased (recency), how often they purchase (frequency), and how much the customer spends (monetary). |
 | | Using RFM analysis, customers are assigned a ranking number of 1,2,3,4, or 5 (with 5 being highest) for each RFM parameter. |
 | | Although RFM analysis is a useful tool, it does have its limitations. |
| whatis.techtarget.com /definition/0,289893,sid9_gci751219,00.html (307 words) |
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