---
title: "Web Segments: RFM"
slug: "web-segments-rfm"
tags: ["rfm", "rfm segments"]
updated: 2026-01-20T14:01:54Z
published: 2026-01-20T14:01:54Z
canonical: "academy.insiderone.com/web-segments-rfm"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://academy.insiderone.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Web Segments: RFM

> [!NOTE]
> This type of RFM segment is available in [App Push](/v1/docs/app-push), [InApp](/v1/docs/app-template-store-inapp), OnSite, [Architect](/v1/docs/introduction-to-architect), and [Web Push](/v1/docs/web-push-overview) products. If you see the new design on your segments page, refer to [RFM Segments](https://academy.useinsider.com/docs/rfm-segments).

RFM stands for Recency, Frequency, and Monetary value, a method used to evaluate customer value by analyzing past transaction data.

This model creates segment groups based on purchase history and assigns scores that indicate the customer’s value to the brand.

## Scoring model

- Five levels of scores are available for Recency, Frequency, and Monetary values (scores 1–5).
- Total possible combinations: 125 segments (5³)
- Score interpretation:
  - 5 = Highest ranking (e.g., most recent activity, highest frequency, highest spending)
  - 1 = Lowest ranking (e.g., long inactive, low frequency, low spending)

### Definitions

- **Recency**: Time since last purchase or activity with the brand.
- **Frequency**: How often purchases or interactions occur with the brand during a particular period.
- **Monetary**: How much a user spends during a defined period

### Calculation basis

- **Ecommerce websites**: RFM is calculated based on purchases.
- **Non-ecommerce websites**: RFM is calculated based on sessions.

![](https://cdn.document360.io/c6df4583-da94-4cb2-bb8a-be0cbdd11109/Images/Documentation/image-1744799333814.png)

## Use cases

#### High-Spending New Customers

**High** Recency + **High** Monetary + **Low** Frequency

**Action**: Encourage repeat purchases with personalized follow-ups

#### Frequent Low Spenders

**High** Frequency + **Low** Monetary

**Action**: Incentivize larger order values

#### One-Time High-Value Buyers

One purchase with **above-average** spend

**Action**: Drive loyalty through tailored offers

#### VIP Customers

**High** scores across all RFM attributes

**Action**: Reward loyalty with exclusive promotions or early access

#### High-Value Churn Risk

High Frequency + High Monetary + Low Recency

**Action**: Win-back campaigns with strong incentives

#### Low-Value Customers

**Low** scores across all RFM attributes

**Action**: Evaluate reactivation costs vs. potential return