Overview
RFM (Recency, Frequency, Monetary) analysis is a customer segmentation method that ranks and groups your customers based on how recently they visited, how often they visit, and how much they spend. Perkstar automatically segments your customer base using RFM analysis, helping you identify your most valuable customers, spot those at risk of churning, and target your marketing efforts more effectively.
How RFM analysis works
RFM scores customers on three factors:
Recency — How recently the customer made their last purchase. Customers who visited recently are more likely to return. The timeframe varies by business type — a cafe might measure in days, while a car dealership might measure in months
Frequency — How often the customer makes purchases. Frequent buyers are your most engaged customers and the most likely to keep coming back
Monetary value — How much the customer spends over a given period. High spenders may purchase less frequently but buy more expensive products or services when they do
By combining these factors, Perkstar automatically places each customer into one of nine segments.
The nine RFM segments
Perkstar tracks the time since last visit and the number of visits to assign customers to segments automatically.
0 to 30 days since last visit
1–3 visits: Beginners — New customers just getting started
4–7 visits: Growths — Promising customers building a habit
8–12 visits: Champions — Your most active, loyal customers
31 to 60 days since last visit
1–3 visits: Doubtful — New customers who haven't returned recently
4–7 visits: Medium (borderline) — Moderate customers showing signs of disengagement
8–12 visits: Loyal — Regular — Strong customers who visit often but not as recently
61 to 90 days since last visit
1–3 visits: Sleeping — Customers who have gone quiet
4–7 visits: At risk — Previously engaged customers drifting away
8–12 visits: Needs attention — High-value customers who haven't visited in a while
Tip: Your Champions and Loyal segments typically drive around 80% of your revenue. Treat them as brand advocates — incentivize them to share their loyalty cards with friends through your referral program.
Important: The number of customer visits over their lifetime does not affect segment assignment. Only the visit count and recency within the configured time windows are used.
How customers move between segments
Customers move through segments automatically based on their behavior.
Example 1 — Customer becomes inactive: A customer installs the card and makes one visit, landing in the Beginners segment. If they don't return, their segment gradually changes: Beginners → Doubtful → Sleeping.
Example 2 — Customer becomes more active: A customer starts as a Beginner with 1–2 visits. They make three more visits within 15 days, and their segment immediately changes to Growths. If you've set up a push notification for this segment change, the customer receives it automatically.
Example 3 — Active customer disengages: A customer in the Champions segment stops visiting. Over time, their segment is gradually lowered based on your recency settings until they reach Needs attention.
Note: Customers descend through segments horizontally — moving from left to right across recency tiers while maintaining their frequency level.
Customizing RFM settings
You can customize the recency and frequency values to match your specific business type. This ensures your segments accurately reflect your customers' behavior patterns.
Navigate to Settings in your dashboard.
Click the RFM tab.
Adjust the recency intervals and frequency ranges as needed.
Important: When you change RFM segment settings, all customers are recalculated immediately and redistributed to new segments. Customers will receive the corresponding push notification for their new segment if enabled.
Recommended settings by business type
Food and beverage (cafes, restaurants) Recency: 0–10 days (high), 11–20 (medium), 21–30 (low). Frequency: 8–12 (high), 4–7 (medium), 1–3 (low).
Health and wellness (salons, gyms, spas) Recency: 0–15 days (high), 16–30 (medium), 31–45 (low). Frequency: 6–9 (high), 3–5 (medium), 1–2 (low).
Medical (clinics, pharmacies) Recency: 0–20 days (high), 21–40 (medium), 41–60 (low). Frequency: 4–6 (high), 2–3 (medium), 1 (low).
Professional services (lawyers, consultants) Recency: 0–25 days (high), 26–50 (medium), 51–75 (low). Frequency: 3–5 (high), 2 (medium), 1 (low).
Retail (stores, e-commerce) Recency: 0–10 days (high), 11–20 (medium), 21–30 (low). Frequency: 10–15 (high), 5–9 (medium), 1–4 (low).
Hospitality (hotels, tourism) Recency: 0–20 days (high), 21–40 (medium), 41–60 (low). Frequency: 5–7 (high), 3–4 (medium), 1–2 (low).
FAQs
Do I need to set up RFM analysis manually?
No. Perkstar automatically segments your customer base using the default RFM settings. You can customize the recency and frequency values in Settings > RFM if the defaults don't fit your business type.
What happens when a customer changes segment?
If you've enabled push notifications for segment changes, the customer automatically receives a notification when they move to a new segment. You can also use segment changes as webhook triggers to run automated funnels or messages through external tools.
Can I use RFM segments for targeted marketing?
Yes. You can filter your customer base by RFM segment and send targeted push notifications or campaigns to specific groups — for example, sending a re-engagement offer to all "Sleeping" customers or a referral incentive to "Champions."
Does lifetime visit count affect the segment?
No. Only visits and recency within the configured time windows are used for segmentation. A customer's total lifetime visits do not influence their segment assignment.
What happens if I change the RFM settings?
All customers are recalculated and redistributed to new segments immediately. Customers receive push notifications for their new segment if those notifications are enabled.