Abbreviation for frequency, recency, amount, and category. A method of scoring based on a customer's behavioural data. It is normally used in databased marketing to provide easy access to that customer's transactional information.
Frequency refers to time elapsed between purchases. Recency is the date of the last purchase. Amount is the average value of that customer's purchases. Category refers to the category of the product in which the customer is interested. Each customer is given a score based on these parameters, which can be used to divide customers into groups. A company may use this information at both tactical and strategic levels in its direct marketing effort.
Subjects: Business and Management.