Definition
RFM analysis scores each subscriber on three dimensions: Recency (how recently they engaged), Frequency (how often they engage or purchase), and Monetary (how much they have spent or contributed). The combined RFM score places subscribers into segments like champions, loyal customers, at-risk, and lost.
The Three Dimensions
- Recency: Days since last open, click, or purchase. More recent is better.
- Frequency: Number of opens, clicks, or purchases in a defined period. Higher is better.
- Monetary: Total revenue or value generated. Higher is better.
Application
Each subscriber receives a score of 1-5 on each dimension. A subscriber who opened yesterday, clicks weekly, and spends £100+ per month scores 5-5-5. A subscriber who last opened 6 months ago and never purchased scores 1-1-1. These segments drive different campaign strategies — high scorers get loyalty offers, low scorers get re-engagement or sunset campaigns.
Related Glossary Terms
A/B Testing
A/B testing in email marketing is the practice of sending two variations of an email to a small sample of your list to determine which version performs better before sending the winner to the remaining subscribers.
Abandoned Cart Email
An abandoned cart email is an automated message sent to customers who added items to their online shopping cart but left without completing the purchase. It is one of the highest-converting email types in ecommerce.
Announcement Email
An announcement email is a dedicated campaign that communicates a specific update, milestone, or change to subscribers, from product launches and feature releases to company news and events.
ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) is a metric that measures the average revenue generated per email subscriber over a specific period, used to evaluate list value and campaign effectiveness.
Attention Rate
Attention rate is the percentage of email opens that last longer than 5 seconds, distinguishing genuine reads from passive opens, preview-pane views, or Apple MPP auto-loads.
B2B Email Marketing
B2B email marketing targets business professionals and organisations with longer sales cycles, educational content, and relationship-driven campaigns compared to B2C email.