Bulletproof Email Segmentation: How to Use The RFM Strategy

Written by

Bogdan Mihalache


March 16, 2022

Bulletproof Email Segmentation: How to Use The RFM Strategy

What is RFM

RFM stands for Recency, Frequency, and Monetary (Value). It is one of the easiest ways to segment your customer database based on user behavior. 

I’ve been using RFM since day one to help my ecommerce clients manage their email segments more efficiently and get better results from their email campaigns.

You see, there are so many brands out there that don’t understand how to form a powerful connection with their email subscribers and customers. And this ultimately leads to a poor customer experience and high churn rates.

So how can you use RFM to create meaningful relationships with your subscribers? Let’s first understand what RFM stands for.

RFM stands for Recency (R), Frequency (F), and Monetary Value (M). And in short, it helps you segment your customers based on these three variables. 

  • Recency (R) – how recently a customer has engaged with your brand
  • Frequency (F) – how often a customer engages with your brand
  • Monetary Value (M) how much a customer usually spends with your brand

RFM and Email Segmentation

By combining these three variables together, you ensure that you’re only sending emails to engaged subscribers. 

And you can determine how tight or broad you want that engagement to be.

The more recent someone has engaged with your brand, the less people you’ll have in your list and the higher the results you’ll get on your email campaign. 

The table below might make it easier to understand.

Final Thoughts

Whether you skimmed the article or actually read it, it doesn’t matter. If there is one thing you should take away with you, it is that you need to know WHO you’re emailing in order to form meaningful relationships with your customers. 

RFM will help you target specific audiences with personalized content which ultimately will help you create better customer experiences.

Some cool resources for you👇

Learn the best practices behind an effective email flows strategy for eCommerce stores!

Download my free swipe file here.