Recency, Frequency, Monetary (RFM) analysis -- who is familiar?
For Magento Business Intelligence users, and those Magento marketers using BI tools of your own -- is anyone currently analyzing your customer base with a variant of recency, frequency, monetaryanalysis?
RFM analysis is a set of analyses that seeks to predict high-revenue customers by assuming futurehigh-revenue customers:
Have made transactions on your store very recently
Have a regular frequency of purchases relative to other customers
Have a higher average order value relative to other customers
Some of our Magento BI users develop a "score" to weight potentially customers by, and then create marketing strategies targeting the high-score users to ensure their retention.
Is anyone out there doing something similar? What techniques or methods are you using to find the high-value customers in your Magento data set? Very curious to hear what any of you marketers are up to.