The Iron Rule of RFM

Of course we can’t know that for sure—Jane’s last big purchase may have finally satisfied all her needs, and you may never hear from her again. But big spenders like Jane tend to spend again—hence the power of M for predicting future sales.

And also intuitively, it’s fairly easy to rationalize why F (frequency) is a good predictor of a customer’s future buying behavior. If Mary Smith has ordered from you several times, chances are she is getting what she wants and will probably buy again.