RFM Scoring: Who are your best customers or donors?
What is RFM Scoring?
RFM is a method used for analyzing customer value by mining the data in your database. Databases hold valuable information about spending or donation patterns. It contains information about who your most valuable clients or donors are, what their patterns are and how their patterns change.
RFM scoring has many Benefits
- Gain insight for marketing with further analysis
"what are my best customers buying most of?"
"how does geographic location affect sales?"
"are there any obvious patterns?
- Use RFM scoring on a continuous basis to segment your client behaviour and predict future performance
“Since the last time we did the scoring, how has the dollar value cut-off point shifted for each group?”
- If you know who your best customers are, you can have them further analyzed and categorized giving you a picture of who you want to seek out. Based on the categorization, you can rent lists of persons with the same categorization. Ask us how that works.
- Based on purchases or donations, you can determine which RFM cells generate a profit, which break even and which cost you money. Use this for quick income and strategic contact.
- Shows overall health of the organization and monitors change.
By utilizing RFM scoring you will be able to communicate with your list in a highly targeted manner.