All Collections
Player Segmentation & RFM Segments
RFM Segments
Introduction to Gameball’s RFM Segments
Introduction to Gameball’s RFM Segments

Understand the concept of RFM analysis and segmentation and how to use them to reach your business goals.

Rana ElGharib avatar
Written by Rana ElGharib
Updated over a week ago

Table of Contents

Segmenting customers is the first step in making your marketing efforts more effective. By targeting customers based on similarities and buying behavior, you can then create and build customer loyalty. Learn more about manually segmenting players with Gameball

Besides the four main types of customer segmentation, namely demographics, geographic location, psychographics, and behavioral patterns, there’s another type called RFM.

RFM doesn’t consider the abovementioned four aspects. Instead, it groups customers using different criteria that’s more focused on monetary value.

What is RFM?

RFM stands for recency, frequency, and monetary value of a customer. It is a customer segmentation tactic that focuses on customers’ spending habits generally and inside your store. It looks at spending based on the following:

  • When the customer last made a purchase in your store (recency)

  • How often does a customer purchase from you (frequency)

  • How much the customer pays per transaction (monetary value)

Businesses that use the RFM method can get a clearer picture of their customers’ lifetime value. Accordingly, they can decide which types of customers they’re better off retaining.

If you’re a business that’s using customer segmentation to target customers, you’re one step ahead in the game.

When you segment customers based on recency, frequency, and/or monetary value, the segments built on this analysis are called RFM segments.

What is an RFM analysis?

To analyze recency, frequency, and monetary value data, you’ll need to conduct an RFM analysis. To do so, you’ll need to assign scores for your customer categories based on recency, frequency, and monetary value. The resulting scores are called RFM scores.

Gameball has made RFM analysis for you and created RFM segments accordingly. You do not have to do the RFM scoring system yourself, nor do you need to create RFM segments to manually place players in them.

What are the RFM Segments Gameball has created?

Gameball has created seven segments using the RFM analysis system. These segments could serve you with customer retention and engagement. Here are the seven RFM segments you will find on Gameball dashboard:

  • Best Buyers: players who have the highest purchase frequency, recency, and amount spent.

  • Loyal: with high recency and monetary scores, these players purchase the most frequently.

  • New Players: players who just joined.

  • Promising: players who are active, buy every now and then and respond to promotions.

  • Can't lose: players who made big purchases but a very long time ago.

  • About to lose: players who are inactive for a while with very low purchase frequency and very low amount spent.

  • Lost: players who have the lowest purchase frequency, recency, and amount spent.

You can use RFM customer segmentation to analyze your customer segments further. Use the RFM analysis to determine your next steps in your customer acquisition and customer retention strategies. Learn more

Where can I find Gameball's RFM segments?

  • Go to Gameball Dashboard, from the left bar, click Players > RFM Segments.

❗️Note: you will also find the RFM analysis on Gameball's Homepage.

What's Next?

Did this answer your question?