The number of clients must exceed at least 1,000 per year

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Relatively simple implementation . Segmentation can be done on your own using publicly available Excel or Google Sheets.
Suitable for any business , if it has a large customer base and regular sales.
Flexibility. You can set segment boundaries yourself — choose appropriate values ​​for the Recency, Frequency, Monetary indicators and thus adapt the system to your audience and products.
Accuracy. The analysis is based on “hard” data — the purchase history of your customers. This information is considered more accurate than, for example, information about interests or social status. Therefore, segmentation using the RFM method can be trusted.
Important disadvantages include:

A large base is needed. Not suitable for rare purchases. If customers contact you 1-2 times during the entire period of cooperation, then there is no point in RFM analysis.
Data quickly becomes outdated. The contact base and purchase paraguay phone number list information changes every day, so RFM analysis must be updated regularly.
Does not reach potential customers. You can only analyze those users who have already made a purchase. Data on future or prospective buyers cannot be obtained using this method.
Therefore, it is recommended to combine RFM analysis with other methods of studying the target audience .

To sum it up
RFM analysis is a method of segmenting customers based on their purchase history. Initially, marketers used it to organize mailings, but later it found wider application in business.

The abbreviation RFM stands for:

Recency - the time since the last purchase.
Frequency - frequency of purchases.
Monetary — average customer check.
The essence of the approach: the entire base is divided into categories, depending on these three parameters. This way you can determine who buys often and for large amounts, rarely and a little at a time, or has not bought for a long time. For different categories, you can develop your own interaction strategy and, thus, increase the income from each client.