RFM stands for Recency, Frequency, and Monetary Value. It is a common market research technique used to group fans into buckets based on their spending patterns. The FanThreeSixty RFM insight uses the last 365 days of ticket transactions to group fans based on the date of their last ticket purchase (Recency), how many tickets they’ve purchased (Frequency), and the amount they’ve spent on ticketing (Monetary Value). Values for each metric can range from 0 (indicating no purchase activity) or 1-10 (1 low, 10 high).
The RFM data is used to create the “Loyalist”, “Promising”, and “Needs attention” recommended audiences.
Use RFM to:
identify recent, frequent, or high value purchasers without having to analyze raw data
combine all three metrics to target specific segments (i.e., High Frequency, High Monetary Value, Low Recency for a targeted win-back campaign)