01 Jun RFM Analysis – June’s Free Tutorial
June’s free MBTN tutorial is RFM Analysis, which stands for Recency, Frequency, and Monetary (value). RFM analysis is a great and quick way to categorize your customers and an essential component of the marketing analytics / marketing metrics toolbox. Ultimately, the goal of using these different measures is to place your customers into groups that your company may want to treat differently. For example, using different promotional or sales activities or different price discounts. While RFM Analysis falls under our marketing set of modules, the concepts covered have important implications for finance and operations as well. RFM is also a great tool for small business – partially because it is easy to implement.
The tutorial will help you with the following topics:
- What is the definition of recency with regard to a customer and how is it calculated?
- What is frequency and how is it calculated?
- What is monetary value and how is it calculated?
- How do I determine appropriate ratings for RFM categories?
- What are some examples of categories of customers I might use for my business?
- How does RFM Analysis vary for different contexts – subscriber based (SAS), website and social media, and B2B?
The tutorial will walk through multiple examples of how it may be used in a small business context. View the free tutorial at the link below.
Monthly MBTN Module – RFM Analysis
Remember, our modules also include problem sets to provide additional practice and feedback about these concepts.
Although the link has expired, look for this month’s tutorial on our blog and you may find the following additional resources helpful for covering other Finance and business topics:
Academic Brochure for Marketing Modules and Micro-Certifications
Marketing Bundle – includes all Marketing Modules and Micro Certifications ($59.95)
No Comments