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🧠 LRFM Overview

Written by Schae Lilley
Updated over 4 months ago

Overview

The LRFM Overview provides a powerful framework for segmenting customers based on their Length, Recency, Frequency, and Monetary value. It’s designed to help teams uncover customer behavior trends, identify high-value audiences, and develop strategies that drive loyalty and retention.

Integrations Required

  • OMS (e.g. Shopify, Salesforce Commerce Cloud)

Sections

LRFM Summary

Breaks down how customers are scored across four core dimensions:

  • Length (L): Days since first purchase

  • Recency (R): Days since most recent purchase

  • Frequency (F): Purchase count over time

  • Monetary (M): Total spend or LTV

Customer Segmentation

Groups customers into actionable segments using LRFM scores.

LRFM Segments

Provides segment-level breakdowns by:

  • Revenue & Customer Volume

  • AOV by Segment

  • Segment Scores

  • LTV by Segment

LTV & LTO Distribution

Shows how Lifetime Value (LTV) and Lifetime Orders (LTO) are distributed across segments.

Days Since Last Purchase

Visualizes customer dormancy by segment.

LTV Windows

Summarizes customer performance metrics across different windows:

  • First Order AOV

  • Avg 30/60/90 Day AOV

  • Avg 30/60/90 Day LTV

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