The RFM Advisor page helps you keep your RFM parameters up-to-date and effective.
Introduction
The eRFM parameters are used to create the right lifecycle segments for your business model. RFM Advisor helps you calculate the key thresholds and parameters that are needed for lifecycle analysis. Smart Insight will analyze and segment your customers based on the lifecycle stages and their purchase behavior. By using RFM Advisor, your lifecycle segments will be more precise and your analytics will be more accurate.
You can set up the initial parameters for lifecycle analytics and segments and regularly review and update these settings by using RFM Advisor.
Please note that when a contact is deleted, all of the data relating to that contact is also deleted. This will retrospectively affect any reports which use contact-level data. Contact deletion may affect the reports available under Analytics > Customer Lifecycle. You may experience the following changes:
- figures may change in all charts because contact deletion affects all calculations.
- deleting contacts also affect conversion rates, the AOV (Average Order Value) and lifecycle calculations.
For more information on the effects of contact deletion, see What happens to deleted contacts in Emarsys?
Notes:
- The calculation runs during the next data upload.
- The RFM Advisor analyzes data collected during the last two years.
Prerequisites
You can access the RFM Advisor page if Smart Insight is activated on your account.
Recency analysis
The purchase recency analysis groups your purchases by the time between two purchases made by the same customer. After processing that data, RFM Advisor calculates the recommended values for the Defecting recency limit and Inactive recency limit.
Here you can see the following metrics:
- Distribution of purchases by time passed until next purchase - Your purchases are grouped by the time that has passed between two purchases made by the same customer in this chart.
For detailed metrics, hover your mouse over the chart.
- Defecting recency limit - The number of days after which customers who have not made new purchases are considered defecting.
- Recommended defecting recency limit - The recommended value for the Defecting recency limit.
- Inactive recency limit - The number of days after which customers who have not made new purchases are considered inactive.
- Recommended inactive recency limit - The recommended value for the Inactive recency limit.
To accept the values recommended by RFM Advisor, click the Accept recommended values button.
Only users with BI Administrator permissions can make these changes.
Monetary analysis
The monetary analysis of purchases groups your customers by their total lifetime spend. Based on this, RFM Advisor calculates the recommended values for your current buyer status limits.
Here you can see the following metrics:
- Distribution of customers by total amount spent - Your customers are grouped by their total lifetime spend in this chart.
For detailed metrics, hover your mouse over the chart.
- The current lower limits of each buyer status.
- The recommended values for the lower limits of each buyer status.
To accept the values recommended by RFM Advisor, click the Accept recommended values button.
Only users with BI Administrator permissions can make these changes.
Filtering the charts
You can use the Smart Insight attributes to filter the charts by contact, purchase and website behavior criteria.
Notes:
- The Purchase date filter is not available on the RFM Advisor page.
- For more information, see sections Contact attributes, Purchase attributes and Website behavior attributes.
