Powertrak's RFM scoring functionality segments and ranks customers using Recency, Frequency and Monetary value (RFM) to help you target one-on-one marketing campaigns for your best prospects.
RFM value is a methodology that gives you a quantifiable analysis of your customers purchasing behavior through a simple numeric score.
- How recently has a customer purchased?
- How frequently does a customer purchase?
- What is the monetary value of a customer’s purchases?
- What is a given customer’s velocity (+ or -) relative to the collective base?
RFM scoring is generated by attributing a value to each parameter. Velocity is calculated to show a given customer’s trend, up or down, relative to the midpoint RFM score for all customers. The scores give simple quantitative indicators to identify and segment your customers by their historic buying behavior and trend direction. You can use this information to create unique marketing messages designed to prompt purchasing behavior of customers with similar scores. Perhaps an offer of bundled products or quantity incentives targeted at customers with low monetary but high frequency scores. For retention control initiatives, filter on low (–xxx) velocity scores which indicate customers you’re at risk of losing. Those with high monetary scores you might task Account Mangers to follow-up with directly and for midlevel monetary scores, a customized email, call down, or mailing campaign might be appropriate to re-engage and generate new interest.
Powertrak RFM Scoring for Microsoft Dynamics CRM 2011 has not been reviewed by any customers.
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