RFM Grid Template

Your playbook to customer segmentation

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In today’s competitive market, understanding customer behavior is critical to building loyalty and driving sales. But not all customers are the same, and a one-size-fits-all approach won’t deliver the results you need. That’s where the RFM (Recency, Frequency, Monetary) Grid Template comes in.

Our RFM Grid Template is designed to help you segment your customers based on three essential metrics—Recency (how recently they purchased), Frequency (how often they purchase), and Monetary (how much they spend). This simple, powerful template helps you identify your most valuable customers and create targeted strategies to keep them coming back.

How Does the RFM Grid Work?

The RFM model assigns a score (1-5) to each customer based on three factors:

Recency (R): How recently did the customer make a purchase? Recent buyers are more likely to return.
Frequency (F): How often does the customer make purchases? Frequent customers show higher loyalty.
Monetary (M): How much has the customer spent? High spenders are typically more valuable to your business.

Each score (R, F, and M) ranges from 1 to 5, with higher scores indicating better customer behavior in that category. Adding up these scores gives you a total RFM score for each customer, helping you categorize them into meaningful segments.

Segmenting Customers with the RFM Grid

After calculating RFM scores, you can use them to classify customers into actionable segments:

Champions (High R, High F, High M)
These are your most loyal, high-spending customers who buy frequently. Action: Reward them with loyalty perks, VIP treatment, or early access to new products.
Loyal Customers (Moderate R, High F, High M)
Loyal customers buy frequently and spend a lot, but they may not have purchased as recently. Action: Keep them engaged with exclusive offers, personalized recommendations, and upsell opportunities.
Potential Loyalists (High R, Low-Mid F, M)
These customers recently engaged with your business but haven’t bought frequently. Action: Encourage repeat purchases with targeted offers, discounts, or educational content.
At Risk (Low R, Moderate F, M)
Previously frequent buyers who haven’t engaged recently. Action: Send “We Miss You” campaigns, offer special discounts, and highlight any new products.
Dormant (Low R, Low F, Low M)
These customers are inactive with low spend and engagement. Action: Consider low-cost reactivation campaigns, feedback surveys, or a final offer.

Why Use the RFM Grid Template?

The RFM model helps you see which customers are most valuable to your business, making it easier to prioritize your marketing efforts. By focusing on high-impact segments like Champions and Loyal Customers, you can boost retention, increase average order value, and improve customer satisfaction. Meanwhile, re-engagement strategies for at-risk and dormant customers can reduce churn and revive inactive accounts.

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Frequently asked questions

What is a Notion template?

A Notion template is any publicly shared page in Notion that can be duplicated. They allow you to duplicate other workflows and systems that you want to use.

How to duplicate a template?

After your purchase, you will receive a template link. Open the link, then click on duplicate on the top right corner, then choose the workspace you'd like to duplicate into. If you're logged out or don't have a Notion account, you'll be prompted to sign in or create one first.

Do I need to pay for Notion to use a template?

No. You will just need a free account plan in Notion to use a template.

What does RFM stand for?

RFM stands for Recency, Frequency, and Monetary—the three key metrics used to evaluate customer behavior. Recency measures how recently a customer made a purchase, Frequency measures how often they buy, and Monetary measures their total spend.

How do I assign scores in the RFM model?

Each customer is assigned a score of 1 to 5 for each RFM factor. Higher scores indicate better behavior (e.g., a Recency score of 5 means they purchased very recently). To keep it simple, you can create bands based on your data, such as 1 purchase = score of 1, 2-3 purchases = score of 2, and so on.

What are the benefits of using RFM segmentation?

RFM segmentation helps you prioritize your customer retention and marketing efforts. By understanding which customers are most engaged and valuable, you can tailor your approach to boost loyalty, increase revenue, and reduce churn.

How often should I update my RFM scores?

Ideally, RFM scores should be updated monthly or quarterly, depending on the nature of your business. Regular updates ensure that your segments reflect current customer behavior, allowing you to adjust your strategies as needed.

Can I use this template in Excel or Google Sheets?

Yes! Our RFM Grid Template is designed for easy implementation in both Excel and Google Sheets. You can calculate RFM scores, segment customers, and track your marketing actions directly in the template.