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How to do RFM analysis in Amplitude?

  • 4 July 2023
  • 1 reply
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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%20recency%2C%20frequency%2C%20monetary%20value%20(RFM)%20model%20is,%2C%20the%20better%20the%20result).

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Best answer by Saish Redkar 4 July 2023, 19:25

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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
  • 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.

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