RFM Values

The RFM Settings screen is used to define customer segments that you can use to slice and dice your customer base.

Accessing RFM settings

Navigate to Platform > Brand Supplied Data > RFM Values

How these settings are used

All of the configurations on this page are used to segment your customer base in your reporting based on:

• Recency — How long has it been since their last purchase?

• Frequency — How many purchases have they made since they became a customer?

• Monetary — What is their average order value?

You will be able to segment your customers in your reporting based on the individual Recency, Frequency, and Monetary (RFM) groups you define in the RFM Groups section of this page, as well as the customer segments you define further down the page. The customer segments are higher-level groupings of customers based on their individual RFM values.

You'll be able to see this data in visualizations like the examples below:

Editing RFM groups

In this section, you can adjust the Recency, Frequency, and Monetary groups based on your business needs. For example, the default Frequency groups of 1, 2, and 3+ may be too small for your business if you sell subscriptions of consumable goods.

The easiest way to adjust these is to clear out all of the existing buckets and start from scratch.

When adding new buckets, you would enter the starting value of the new bucket.

For example, if you wanted to set your Frequency buckets to 1-3, 3-6, and 7+, here's how you could do it:

Don't oversegment your customers

It's important to create RFM groups that are useful and meaningful to your business. The RFM groups will be the basis of your customer segments. Each unique RFM group needs to be assigned to a customer segment. If you create too many RFM groups, it may be more cumbersome to group them into segments.

Configuring customer segments

Why use customer segments?

This section allows you to build higher-level customer segments out of combinations of different RFM Groups. For example, the following are among the default Daasity customer segments:

• High-Value Customers: Customers with frequency 3+ and Recency 0-90

• Churning High-Value Customers: Customers with frequency 3+ and Recency 91-364

• Lapsed High-Value Customers: Customers with frequency 3+ and Recency 365+

This allows you to quickly see the breakdown of how many of your high-value customers have recently purchased, how many are at risk of lapsing, and how many are lapsed.

Knowing this allows you to then use our Audiences tool to tag these customers in you Email/SMS platform and message them to get them back to your site & spend.

If Daasity's out-of-box segments don't necessarily fit your business, keep reading to find out how to customize them.

Using the customer segments section

In this section, you can add, delete, or rename the customer segments that will be available in your reporting.

You can also re-order the segments by dragging them up and down. This will affect how the segments will be sorted in your reports.

Adding & deleting segments

If you add a segment, you'll need to define the RFM combinations that qualify for that segment in the section below.

If you delete a segment, you'll need to reassign the RFM combinations to a different segment.

Using the segment definitions section

In this section, you can configure which segment each RFM combination should fall into.

You must define a customer segment for each RFM combination. This is to ensure that all of your customers fall into one of your customer segments and you don't have customers fall into a NULL segment.

Here's a demo of how you can use the tools in this section to assign all of the RFM combinations to the correct segment:

Where to see this data

To view these segments in your reporting, you can go to your Retention dashboard.

You will also be able to use the Customer Segment, Recency Group, Frequency Group, and Monetary Group dimensions in any explore that includes the Customer RFM & First/Second/Last Order view:

You'll find them in the Order & Order Line Revenue, LTV Time Series, and Customer Flags & Info explores, among others.

Seeing the changes in your data

Updating the RFM settings on this screen will immediately adjust the configuration for your account. However, you will not see the updates in your reporting until your next workflow run has completed (typically by the next morning).

Applying changes retroactively

Some of our reporting — like the Retention dashboard — shows historical data that allows you to see how many customers fell into each segment for each month your business has been active.

The data that powers that reporting is built incrementally, which means that if you change the definitions of your RFM groups or customer segments, the tables need to be rebuilt so that the changes reflect for historical data.

To get these changes applied retroactively you can do one of the following:

• Email support at [e-mail] and we will help you get your data reset.

• If you're an enterprise merchant and set up to run custom code on your database, you can run the reset yml in our shared SQL script repository.