RFM is an acronym for three key marketing criteria: Recency, Frequency, and Monetary value. This customer segmentation method analyzes purchasing behavior to identify and target the most valuable customers for a business. Recency refers to the date of the last purchase, Frequency to the number of purchases over a given period, and Monetary value to the total amount spent by the customer. Together, these criteria help to better understand customer loyalty and lifetime value.
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