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How to Use RFM Analysis

by Brandon Kim

RFM Analysis is an acronym for Recency, Frequency, and Monetary, and is used as a ranking system to determine customer value. Each customer is assigned a rank or score for each of the three RFM metrics. OroCRM performs the calculations automatically after the segments are defined.

  • Recency—How long ago the customer made their last order?
  • Frequency—How many orders are placed in a 12 month period?
  • Monetary value—How much money did the customer spend on the orders?

As a prerequisite to creating RFM segments, you must created have a Magento Integration. You can define the RFM segments during channel creation or enable them on an existing channel. For more information on creating segments and channels, please see our documentation at

RFM  metrics can be used to determine who are the most or least engaged customers.  These values can be used as segmentation criteria which marketers use to get the best return on marketing dollar investment. RFM Analysis is helpful for accurate targeting of customers using promotions and campaigns.

This is an example of how customers may be ranked using RFM:

Rank Recency
1 (Highest) Last purchase was made 0–30 days ago
2 Last purchase was made 31–90 days ago
3 Last purchase was made 91–365 days ago


Rank Frequency
1 (Highest) Over 20 purchases per year
2 5–19 purchases per year
3 0–4 purchases per year


Rank Monetary value
1 (Highest) Over $1000 spent per year
2 $200–$999 spent per year
3 $0–$200 spent per year

A ranking of 1 would be someone who’s purchased within the last 30 days, makes over 20 purchases a year spends over 1000.00 in that year.

A ranking of 2 might be someone who purchases within the last  31-90 days ago, makes between 5-19 purchases a year and spends between 20-999 for that year.

A ranking of 3 might be someone who purchases within the last 91-365 days, makes 0-4 purchases a year and spends between 0-200 dollars a year.

We can demonstrate this by navigating to the main system menu and selecting channels.

Once you’ve created a Magento Channel and successfully connected to your Magento Integration, click the enable RFM checkbox at the bottom of the screen. For more information on How to Setup Magento Integrations, please see our tutorial video in the media-library.

Access the channel created to use for RFM.

  • Check the Enable RFM checkbox
  • A table displays for RFM configuration.
  • Configure the RFM segments.
  • For our first segment, We’re looking for customers who have purchased within the last 5 days, and makes purchases more than 5 times a year and have spent over 5000 on an order.
  • The second segment is customers who have made a purchase between 5-10 days ago, and makes purchases between 4 and 5 times a year and have spent between 3000-5000 dollars.
  • Once you fill in the initial numbers, by default, OroCRM generates the final score based on the values entered.
  • You can define as many segments as necessary. (finish the standard rfm configuration)
  • When you have finished configuring your segments click the save and close button in the top right hand corner of the screen.

You can view RFM information easily from the customer or account views by navigating to customers -> magento customers. Select the drop down to select the channel where we defined segments. This score is also available from the related account record.

Click on any record to load the view page. The calculated RFM score is listed at the top of the screen for each customer.

recency frequency monetary, RFM, RFM analysis

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