RFM combines how recently someone bought, how often they buy, and how much they spend. It can show the current health of a relationship better than cumulative revenue alone.
The demo lowers one customer's recency score as time passes. Even a frequent, high-value buyer may become a win-back candidate after a long absence.
Set score bands around your category's buying cycle. A rapid repurchase rule will misclassify buyers of infrequent products.
When to use
Use it to prioritize repeat purchase and VIP relationship programs.