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Ranking Groups Manually

When ranking groups manually, you must enter criteria for each ranking group.

Note: When defining your manual rankings, you should use higher numbers for more desirable rankings and lower numbers for less desirable rankings to conform to industry standards for RFM rankings.

Example of ranking values manually for RFM analysis

Recency

The criteria for ranking Recency is based on the last time the individual had contact with the organization. The date used is based on the Transaction Date specified in the Transaction Query. The following table illustrates how Recency is ranked:

Group Name

Value

Description

A

15

> 10 days and < = 15 days

B

10

> 5 days and < = 10 days

C

5

< = 5 days

Frequency

The criteria for ranking Frequency is based on the number of times the individual had contact with the organization. The number of times is calculated by the number of records for an individual in the Transaction Query. The following table illustrates how Frequency is ranked:

Group Name

Value

Description

M

0

< 20 times and > = 0 times

N

20

< 30 times and > = 20 times

O

30

< 50 times and > = 30 times

P

50

> = 50 times

Monetary

The criteria for ranking Monetary is based on the amount of money the individual has spent with the organization. The amount is based on the total amount from the Transaction Query. The following table illustrates how Monetary is ranked:

Group Name

Value

Description

T

50

< 100 and > = 50

S

100

< 200 and > = 100

R

200

< 500 and > = 200

Q

500

> = 500

To create an analysis definition

  1. Before you create the definition, go to the Central Object Repository and create the Population Query and Transaction Query.
  2. Identify each RFM model with a unique name (duplicate names are allowed).
  3. Determine whether ranges should be set automatically or manually:
    • When setting ranges manually, specify the Recency, Frequency, and Monetary ranges.
    • When setting ranges automatically, enter a value greater than zero for at least one range (system requirement).
  4. (optional) To save an RFM query to the RFM Query folder, navigate to the folder; otherwise, the query will be saved to the default RFM Process Engine folder.
  5. (optional) To exclude credits from generating for RFM analyses, filter the RFM Process Engine's transaction query to exclude negative amounts (set the amount property's comparison value to be greater than zero for the business object).

See Also

Creating RFM Analysis Definitions

Ranking Groups Automatically


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