# What is RFM Analysis?

What is RFM Analysis? Customer segmentation by Recency (time since last purchase), Frequency, and Monetary value.

## How it works in practice

RFM is the X-ray of your customer base. Five minutes in Klaviyo shows you: VIPs, 'former' VIPs who've gone quiet, and one-time buyers. Each group needs a completely different message.

## Related metrics

- Segmentation — RFM is advanced segmentation
- LTV — high R+F+M customers have the highest LTV
- Win-Back Campaign — targets low R + high F+M
- Klaviyo — offers built-in RFM segments

## Common misconception

'RFM is complicated to calculate.' Klaviyo computes RFM automatically: Champions, Loyal, At-Risk, Lost. No spreadsheet required.

## How to fix it

'At Risk' customers not responding? (1) Change the channel — if email isn't working, try SMS, (2) change the offer — is a discount not enough? Try something new or exclusive, (3) check what happened when they left, (4) accept that some are gone for good.

## Real-world example

A coffee store: 1,200 'At Risk' customers. Win-back message: 'We've missed you — a free cup of coffee with your next order.' 34% returned, generating $13,500 from a single campaign.

## Where to start

Run RFM in the first quarter. In Klaviyo: Profiles → Predictive Analytics → RFM. Focus: (1) pamper Champions, (2) rescue At-Risk customers.

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Category: Analytics · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/rfm-analysis