RDM is the model of three indicators: the last consumption, consumption frequency, consumption amount.

1, the most recent consumption: this indicator is reflected in the customer's loyalty and satisfaction. If a customer's most recent purchase is a long time ago, then his loyalty and satisfaction will be reduced. This is because it indicates that he may have begun to look for alternatives to other products or services.

2, consumption frequency: this indicator reflects the customer's willingness to buy and purchasing power. If a customer often buy the same product or service, then his willingness to buy and purchasing power is stronger. Because he has a higher demand for the product or service.

3, the amount of consumption: this indicator reflects the customer's purchasing power and financial strength. If a customer every time to buy a large number of products or services, then his purchasing power and financial strength is stronger. Because he can withstand greater buying pressure and spending costs.

Definition of RFM Model

Of the many analytical models for customer relationship management, the RFM model is widely mentioned.The RFM model describes a customer's value profile through 3 metrics: a customer's recent purchasing behavior, the overall frequency of purchases, and how much money was spent. The benefit of this mechanistic model is that the three metrics used in the RFM model can be easily understood.

In practice, companies can use the RFM model to manage their customer relationships, using the information generated by the model to develop appropriate strategies, actions, and performance plans. For example, companies can use the RFM model with CRM systems to send regular emails or SMS messages to customers to improve customer loyalty, promote transaction frequency, and increase sales.