RFM - How it works

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Recency, Frequency and Monetary(RFM) Analysis unveils your customers’ ordering behaviours, patterns, and fluctuations.


Skynamo RADAR (of which RFM forms a part) offers insights into your customers’ buying behaviours and trends, by segmenting your customer base using your existing data.


But how exactly, you might ask?


One of the assumptions that our customers make when looking at the data is that we are getting these numbers after comparing them to our other customers, or to other customers in the same industry, where we are actually only making use of their own data with their own specific customers, based on the invoiced data over the last 6-month period.

So, this information will be 100% unique for each and every customer as it uses their own specific transactions sent through a bunch of algorithms and formulas that monitor changes, fluctuations and behavioural movements in their customer's buying patterns using recency, frequency and monetary norms.

So as can be derived from the above. For this to be achieved, we need ALL their INVOICING data (not only orders) from ALL sources – their ERP and any other invoicing generating income sources to their business – to be integrated with their Skynamo instance for Skynamo Radar to be an accurate and powerful analytics tool.


It is also important to mention that this holistic full data integration needs to be constant and ongoing for the accuracy to be maintained.

If we are not given access to all invoicing data, the limitation is that the results may not be 100% accurate, leading to customers being placed in the incorrect segments.



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