What is the concept of recency, frequency, and monetary value (RFM) analysis and how is it used in marketing?

Question

Digital Marketing — Hard

What is the concept of recency, frequency, and monetary value (RFM) analysis and how is it used in marketing?

Accepted Answer

RFM analysis scores customers based on recency, frequency, and monetary value. This technique effectively identifies high-value segments. The correct answer stands out as it accurately describes RFM's purpose in customer segmentation. Other options misapply the concept to content or advertising.