RFM

I.R. Gilyeat & Company

An advisory firm that creates growth through automated marketing.

RFM a simple segmentation technique that all companies should embrace. It allows you to accurately determine the basic health of your business and with the addition of a few attributes, easily identify what types of customers make you most successful and which ones you should avoid. It can also be applied to sales, collections, product management and customer service.

Sales Effectiveness Improvements
If you need to improve the effectiveness of your inside sales team, consider using RFM segmentation techniques. Applying the right RFM models to your sales team and the customers they talk to can provide the lift that you need to improve the effectiveness of each sales professional and the overall efficiency of the entire sales team. Knowing who to call and how often to call them can dramatically improve your top line revenue and bottom line profitability. Call now to learn more.

R stands for recency of purchase, meaning the most recent purchasing event in your customer's invoice history. Of course recency can be applied to the most recent web site session, office visit or any other event of the customer that is measured by time.

F stands for frequency, meaning the number of times that a customer has purchased from you, visited your web site or some other transaction that you are tracking.

M stands for monetary value, meaning the amount of revenue the customer agrees to pay you for each order or transaction.