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Email Marketing Glossary.

Clear, no-fluff definitions of every email marketing term that matters—from open rates to double opt-in. 

 

RFM Analysis

RFM analysis is a segmentation method that ranks customers by three behaviors — Recency (how recently they bought), Frequency (how often), and Monetary value (how much) — to identify your best and at-risk customers.

Also known as: recency frequency monetary, RFM segmentation

Not all customers are equal, and RFM analysis is how you tell them apart using behavior rather than guesswork. It turns purchase history into clear, actionable segments.

What do the three RFM factors mean?

Recency: how recently a customer purchased. Frequency: how often they buy. Monetary: how much they spend. Each customer is scored on all three.

How is RFM used in email marketing?

Score and group customers to target precisely — reward high-value loyalists, re-engage lapsing buyers, and nurture new ones — with messaging tailored to each segment.

Why does RFM matter?

It focuses your effort where it pays off, powering high-ROI segments like VIPs and win-backs. It's a practical foundation for lifecycle and retention marketing.

Related terms

Email List Lead Magnet List Segmentation Subscriber Opt-In Form Double Opt-In

Related reading from Drip

9 Email Segmentation Strategies Every Marketer Should Know Customer Lifetime Value (CLV): Formula + 8 Ways to Increase It

Frequently asked questions

What is RFM analysis?
RFM analysis is a segmentation method that ranks customers by Recency (how recently they bought), Frequency (how often they buy), and Monetary value (how much they spend), to identify your best and at-risk customers.
What do Recency, Frequency, and Monetary mean?
Recency is how recently a customer last purchased, Frequency is how often they buy, and Monetary is how much they spend. Each customer is scored on all three dimensions to build segments.
How is RFM used in email marketing?
You score and group customers to target them precisely — rewarding high-value loyalists, re-engaging lapsing buyers, and nurturing new ones — with messaging tailored to each RFM segment.
Why is RFM analysis useful?
It focuses your marketing effort where it delivers the most return, powering high-ROI segments like VIPs and win-back campaigns. It's a practical foundation for lifecycle and retention marketing.
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