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Segmenting customers is the first step toward making your marketing efforts more effective. By targeting customers based on similar behaviors and spending habits, you can create personalized campaigns and build stronger customer loyalty. In this article, learn how Gameball automatically segments customers using the RFM model. RFM customer segmentation focuses on purchasing behavior rather than demographic or psychographic data. This model allows you to identify high-value customers and tailor your retention and engagement strategies accordingly.

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What Is RFM?

RFM stands for Recency, Frequency, and Monetary Value — a data-driven segmentation technique based on: Businesses that use RFM analysis gain a clearer picture of their customers’ lifetime value, helping them decide which customers to retain and how to allocate marketing resources efficiently.
RFM analysis overview

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What Is an RFM Analysis?

To conduct an RFM analysis, you assign scores to customers based on their recency, frequency, and monetary value. These scores, when combined, categorize customers into actionable segments.
With Gameball, there is no need to manually assign scores or build these segments yourself. Gameball performs the RFM analysis for you and automatically creates seven pre-defined customer segments.

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Gameball’s RFM Segments

The following segments are created automatically by Gameball based on RFM data:
  • Gameball does not remove outliers; however, RFM works on percentiles, not absolute numbers.
  • RFM is refreshed once a day.
Use these segments to craft personalized campaigns that suit each customer group’s behavior and needs. RFM segmentation is a powerful tool to guide your customer acquisition and retention strategies. Learn more.

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Understanding a Customer’s RFM Score

You can view the exact R, F, and M values behind any customer’s segment assignment, along with a plain-language explanation of why they were placed in that segment. This explainability helps you:
  • Understand what drove a customer into a specific segment
  • Spot customers who are close to moving into a higher-value segment
  • Make more informed decisions about who to target and how
To view a customer’s RFM breakdown, navigate to Customers > RFM Segments, select a segment, then click on any customer to see their individual Recency, Frequency, and Monetary scores alongside the explanation behind their assignment.
RFM score breakdown per customer

Individual RFM score breakdown with plain-language explanation

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Where to Find RFM Segments on Gameball

1

Open the Gameball Dashboard

Go to the Gameball dashboard.
2

Navigate to RFM Segments

From the left-hand bar, click Customers, then RFM Segments.
RFM segments navigation

Using RFM Segments to Serve Your Goals

Learn how to use RFM segments to retain, engage, and grow customer loyalty.

Introduction to Segmentation

Understand how dynamic segmentation works in Gameball.