How to do RFM analysis in Amplitude?

akravchenko

can anyone tell me how to do RFM analysis in Amplitude?

 

related links

https://amplitude.com/blog/customer-lifecycle

https://www.investopedia.com/terms/r/rfm-recency-frequency-monetary-value.asp#:~:text=The recency, frequency, monetary value (RFM) model is,, the better the result).

Saish Redkar

Hey akravchenko 

I haven’t personally done RFM analysis in Amplitude, but looking at that it seems like it’s ideally done on a event which captures purchase / key value proposition events from your end customer.

Here’s how I would go about breaking down each phase roughly -

• Recency
  • This can be done by tracking the last purchase either via a custom property or via Computations
• Frequency
  • You can create this metric using some custom formulas
• Monetary value
  • This becomes an easy metric to calculate if you are triggering revenue events with the revenue captured as the relevant property

All these can be summarized using Data Tables to get the desired results in a tabular format.

By no means this is the best approach, since there could be several different ways to tackle this in Amplitude.

Hope this helps.