what is monetary value in the rfm model 
monetary value stems from how much the customer spends a natural inclination is to put more emphasis on encouraging customers who spend the most money to continue doing so while this can produce a better return on investment roi in marketing and customer service it also runs the risk of alienating customers who have been consistent but have not spent as much with each transaction the bottom linethe recency frequency monetary value rfm model assigns a firm s customer base a particular trait which can be used to improve marketing analysis for each attribute recency frequency and monetary value customers are given a score from 1 lowest to 5 best based on their observed purchasing behavior the ideal customer would therefore have a score of 5 5 5 for these three factors other customers with lower scores can be identified for improvement 