The Iron Rule of RFM

Why is RFM such a good predictor of future customer buying behaviors?

This is an interesting question—and the closer you look, the more interesting it becomes. Intuitively, it’s fairly easy to rationalize why M (monetary value) is a good predictor of a customer’s future buying behavior: If Mary Smith has a high lifetime value, chances are she’s happy with what you offer, has a continuing need or desire for it and will probably buy again.