Analyse Customer Distribution Across RFM Segments

Customer > RFM Analysis > Percentile

Summary

The RFM Analysis Segmentation report helps categorize customers based on their recency, frequency, and monetary value, providing insight into customer loyalty and behavior.

Questions the report answers

• What is the distribution of customers across different RFM segments?

How to read the report

In the percentile view, this report segments your customer base according to their Recency, Frequency, and Monetary (RFM) scores, which are categorized by percentiles. This allows you to evaluate customer behavior and value, helping identify high- and low-value groups based on recent activity, purchasing frequency, and spending levels.

Interpreting the Charts

• Number of Customers by RFM Segment: This chart shows the distribution of your customer base across different RFM segments. The size of each bar indicates the number of customers in each segment.
• Average Days Since Last Order by RFM Score (Recency): This chart indicates how recently customers from different segments made their last order. The x-axis shows the RFM Score Recency, which is a measure of how recently a customer made their last purchase. The x-axis typically contains numerical RFM scores (e.g., 5, 4, 3, 2, 1), which indicate levels of recency:
  • Score 5: Customers who made their last purchase very recently
  • Score 1: Customers who haven’t purchased in a long time
• Average Orders per Customer by RFM Score (Frequency): This chart focuses on the purchase frequency of customers. The x-axis in this chart represents the RFM Score Frequency. It indicates how frequently customers make purchases:
  • Score 5: Customers with a very high purchase frequency.
  • Score 1: Customers with a low purchase frequency.
• Average Customer Spend by RFM Score (Monetary): This chart breaks down the average spend per customer. The x-axis shows the RFM Score Money Value, which reflects the monetary value of the customer’s purchases:
  • Score 5: Customers with high spending.
  • Score 1: Customers with low spending.

Glossary

Average Customer Spend:

The average amount spent by each customer. It is calculated by dividing the total customer spend (Sales Amount) by the number of unique customers.

Average Days Since Last Order

The average number of days since customers in a segment last made a purchase.

Average Orders per Customer

Average number of orders placed by each customer. It is calculated by dividing the total number of orders by the number of unique customers.

Total Customer Spend

The total amount of money spent by customers in a specific segment. This metric shows the total revenue contribution from each segment.

Number of Customers

Total count of unique customers who have made at least one purchase. It is calculated by counting the number of unique customers.

% of Total Customers

The percentage of total customers out of all customers. It is calculated by dividing the number of customers by the total number of customers.

Number of Orders

Total count of orders placed by customers. It is calculated by counting the number of orders.