Guest post by Peter B. Wylie and John Sammis
Back in February and March, Kevin MacDonell published a couple of posts about RFM for this blog (Automate RFM scoring of your donors with this Python script and An all-SQL way to automate RFM scoring). If you’ve read these, you know Kevin was talking about a quick way to amass the data you need to compute measures of RECENCY, FREQUENCY, and MONETARY AMOUNT for a particular set of donors over the last five fiscal years.
But how useful, really, is RFM? This short paper highlights some key issues with RFM scoring, but ends on a positive note. Rather than chucking it out the window, we suggest a new twist that goes beyond RFM to something potentially much more useful.
Download the PDF here: Why We Are Not in Love With RFM