Circulation: RFM Optimization Still a Successful Segmentation Tool

“RFM’s been the buzzword of direct marketing for as long as I can remember,” Lenser said. “The reality is, you want to segment by RFM even if you have two names in a cell.” He offered several RFM segmentation tips:

*Create appropriate segments irrespective of segment size.
*There’s no need for statistical significance in segment size.
*Don’t be afraid to segment house files to hundreds of cells.
*Tracking channel migration will be the key for future and profitable growth.