Note here boundaries are arbitrary in order to place an equal number into each group Figure 6.12 RFM analysis

2 Arbitrary divisions of customer database

This approach is also useful since the marketer can set thresholds of value relevant to their understanding of their customers.

For example, RFM analysis can be applied for targeting using e-mail according to how a customer interacts with an e-commerce site. Values could be assigned to each customer as follows:

Each R quintile contains 20% of all customers

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