RFM Turned Upside Down
For many years, the recency/frequency/monetary value (RFM) formula has been the cornerstone of catalog circulation plan segmentation. But what if this is no longer true? What if recent customers actually respond to your catalog mailings at a lower rate than older customers, frequent customers at an even lower rate, and higher spending customers even lower? No, I’m not kidding. This is happening right now and you may not be aware of it.