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RFM: Recency, Frequency, Monetary
Each customer is scored 1–5 on each dimension by quintile. The combined 3-digit code (e.g. 555 = best) maps to a named segment. Quintile scoring is dataset-relative: the same customer might be a champion in a furniture brand and lost in a coffee shop.
The 11 named segments
| Segment | What to do |
|---|---|
| Champions | VIP perks, referral programs |
| Loyal Customers | Upsell, recommend |
| Potential Loyalists | Nurture, second-order push |
| New Customers | Welcome series |
| Promising | Build trust, free shipping |
| Need Attention | Re-engagement, surveys |
| About to Sleep | Limited-time offer |
| At Risk | Personalised win-back |
| Cannot Lose Them | Strong incentive, phone call |
| Hibernating | Aggressive reactivation |
| Lost | Suppress to protect deliverability |
From CSV to live segments
Running RFM monthly via CSV upload works. Running it nightly on Shopify + retail POS data with segment migration tracking is where the real insight lives. RFM analysis in FireAI.
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