The Recency-Frequency-Monetary Analysis in CRM aims to identify which customers?

The Recency-Frequency-Monetary (RFM) analysis is a powerful tool in customer relationship management (CRM) that helps businesses segment their customers based on their transactional history. By evaluating how recently a customer has made a purchase, the frequency of their purchases, and the monetary value of their purchases, RFM analysis aims to identify customers who are most likely to make future purchases.

Identifying customers who are likely to purchase again is crucial for targeting marketing efforts effectively. The premise is that customers who have purchased recently, frequently, and at a higher monetary value are more engaged with the brand and thus more inclined to make future purchases. This insight allows businesses to focus their marketing strategies on the right segments, enhancing customer retention and loyalty.

In contrast, the other options do not align with the primary objective of RFM analysis. Customers who purchase the least are typically not the focus since they are less likely to drive future revenue. While customers who require the least service may be desirable for operational efficiency, that is not a metric evaluated by RFM. Lastly, customers who refer others can be valuable, but RFM analysis does not specifically target this behavior; it is more about understanding transactional patterns rather than referral potential. Therefore, focusing on those most likely to