Skip to main content

RFM segmentation overview

In short

RFM groups your members into a small set of named segments — Champions, Loyal, Promising, At Risk, Lost, New — by scoring three things: how Recently they last visited, how Frequently they visit, and how much Money they spend. The segments refresh every day so you always act on a current picture of your base. You use them to filter audiences, target campaigns, and read your dashboards.

RFM is the lens that turns a raw member list into a list you can act on. Instead of "5,200 members" you read "180 Champions, 920 Loyal, 410 At Risk" — and each of those points to a different kind of action.

The full per-segment definitions, who's typically in each one, and what to do (and not do) with each are on the Segments page.

Why segmentation matters​

Three things change once segmentation is on:

  • You know who to fight for. A Champion is worth a personalised gift on their birthday. A Lost member might be worth a single win-back message, or none at all. Without segments, you tend to treat everyone the same — which means under-rewarding your best customers and over-messaging your weakest.
  • You catch members about to leave. A member who was a Champion six months ago and hasn't visited in eight weeks is At Risk. Catching them before they fully churn is the single highest-return campaign a loyalty program runs.
  • You read your dashboards differently. "Revenue is up 4%" is a number. "Revenue from Champions is up 12% but At Risk is growing 20% month-over-month" is a decision.

The cycle: snapshot → act → re-check​

RFM is not a label you assign once. It's a snapshot the platform recomputes for you every day. Three steps:

  1. Snapshot — once a day, the platform looks at every member's last-visit date, visit count, and spend over the lookback period, and assigns them to a segment.
  2. Act — you build a campaign or one-time push using the segment as the audience filter (for example, Send asset to all members tagged rfm:at_risk).
  3. Re-check — a few weeks later, look again. Did your At Risk members move back to Loyal? Did your Champions stay Champions? The segment they're in now is the answer.

The third step is the one most teams skip. It's also the one that tells you whether the campaign worked.

Where you'll see RFM in the Hub​

RFM doesn't have one home — it shows up wherever members do:

  • Member profile — the segment appears as a badge near the top of the profile, with the underlying numbers (last visit, visits in the period, average ticket or total spend) shown next to it. See Member profile.
  • Customer list and Filter members — RFM segment is a sortable column on the list and a filter row in Filter members. One click filters down to every Champion at Branch A, for example.
  • Smart Campaigns — every segment becomes an audience tag (rfm:champions, rfm:at_risk, and so on) you can pick in any campaign's audience step. Combine with other tags to scope further. See Smart Campaigns overview.
  • Dashboard and BI — segment distribution and revenue-per-segment widgets show the shape of your base at a glance. See Dashboard and BI.

You turn segmentation on, and pick how it should be tuned for your business type, in Settings → Features → RFM. See Set up RFM .

Common mistakes to avoid​

Watch out
  • Treating segments as identity. A member who's Loyal today may be At Risk in three months and Champion in six. Always read the current segment, not the one you remember.
  • Over-rewarding Champions. A Champion was going to come back anyway. Giving them an aggressive discount every month erodes margin without changing behaviour.
  • Messaging Lost members on repeat. A single strong win-back is reasonable. A drip campaign to people who left a year ago is just annoying — and trains them to ignore you the next time you try.
  • Reading the snapshot once a quarter. The whole point of the daily refresh is to act on movement between segments. If you only look once a quarter, you miss the window.
Snapshot, not identity — the research

A widely-cited 2025 industry study found that 70% of the top 20% of customers in a restaurant loyalty program were different people from one year to the next. Champions this year are not necessarily Champions next year — and that's normal. It's a reason to (a) refresh segments frequently and (b) act on them through automated campaigns, not through a static "VIP list" maintained by hand.

The practical takeaway: use the daily-refreshed segments to drive automation, not the segment a member happened to be in three months ago.

How segments are computed (briefly)

The platform looks at each member's loyalty activity over a configurable lookback window (typically twelve months) and scores them on three dimensions:

  • Recency — days since their last visit. Smaller is better.
  • Frequency — number of visits in the lookback window. Bigger is better.
  • Monetary — either total spend in the window or average ticket per visit, depending on what's chosen at setup.

Each score is relative to your own base — a high-spend member at a casual chain is not the same as a high-spend member at fine dining, and the platform compares each person against their peers in your brand only. The three scores combine into a segment using a template tuned for your business type at setup.

The full recompute runs once a day, overnight. A new member needs a minimum amount of activity before being scored at all — until then they sit in the New segment. See Set up RFM for the full configuration options.

Next steps​

  • New to RFM? Read The six segments next — one card per segment with what to do and what not to do.
  • Ready to turn it on? Go to Set up RFM .
  • Want to act on segments? See the Smart Campaigns playbooks for ready-to-use templates.