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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryStrategy & FrameworksRFM Analysis

Strategy & Frameworks

RFM Analysis

A direct-marketing segmentation method scoring customers on Recency, Frequency and Monetary value of purchases.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

RFM analysis is a direct-marketing segmentation method that scores customers on the Recency, Frequency and Monetary value of their purchases. Customers who bought recently, often and for larger amounts tend to be most responsive. Marketers use RFM scores to prioritize offers, personalize messaging and identify at-risk or high-value customers.