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. The 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 the 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 the RFM Advisor.
The calculation runs during the next data upload.
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, the 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 the 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, the 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 the RFM Advisor, click the Accept recommended values button.
Only users with BI Administrator permissions can make these changes.