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In marketing, there’s a method for evaluating customer value based on three key criteria. First, recency, which refers to how recent the customer interaction is, based on the date of the last purchase. Second, frequency, which indicates how often the customer makes purchases over a given period. Finally, monetary value, which represents the total value of purchases made by the customer during that same period. These three criteria combined allow businesses to strategically identify and segment their customer base to better meet their needs and expectations.

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