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Audience & data

RFM: the three numbers that describe every customer you have

Recency, frequency and monetary scoring adapted for pizza: the band cut-offs that actually work, and what to do with each score.

Audience & data5 sections3 questions answered
Audience & data illustration

RFM is forty years old, came out of catalogue retail, and remains the highest ratio of insight to effort in restaurant marketing. Three numbers per customer. No model to train, no data science hire, no black box. The catch is that the textbook cut-offs were written for people who buy a sofa once a decade, and pizza does not work like that.

Why generic RFM fails on pizza

Standard RFM splits each dimension into quintiles: five equal buckets of customers. That is fine when purchase intervals are measured in years. Pizza has a natural weekly-to-monthly rhythm, and quintiles will happily put a 12-day customer and a 40-day customer in the same bucket while splitting hairs between day 3 and day 5.

Use fixed, behaviour-anchored bands instead of quintiles. The bands should map to the actual decision rhythm of the category: this week, this month, this quarter, this year, gone.

Bands that work for pizza

These are the cut-offs we default to. Adjust them if your shop has an unusual rhythm (a campus store or a stadium-adjacent store will run tighter, a rural store wider) but start here.

ScoreRecency (days)Frequency (12mo orders)Monetary (avg ticket)
50–1420+$45+
415–3010–19$34–44
331–605–9$26–33
261–1202–4$19–25
1121+1under $19

Reading the score

A three-digit score like 5-5-4 is precise but unusable in a marketing calendar. Collapse the 125 combinations into eight named groups that a shop manager can hold in their head.

  • Champions (R5, F4–5): recent and frequent. Never discount these. They cost you margin every time you do.
  • Loyal (R4–5, F3–4): solid habit, room to grow ticket. Attach and upsize, not price.
  • Potential (R5, F1–2): new and promising. The second-order journey owns this group.
  • Need attention (R3, F3–5): good customers going quiet. The most valuable alert in the whole system.
  • At risk (R2, F3–5): real money walking out. Spend here.
  • Hibernating (R1–2, F2–3): win-back ladder.
  • Lost (R1, F1): one order, long ago. Cheap channels only; do not fund a mail piece for these.
  • Big spenders (M5, any R): catering, parties, offices. Different playbook entirely.

The monetary trap

Average ticket is the least useful of the three and the one operators fixate on. A $60 average ticket that appears twice a year is worth less than a $24 ticket that appears weekly. Weight frequency above monetary in every decision unless you are specifically building a catering programme.

If you want one number instead of three, use trailing-twelve-month spend and let frequency and ticket resolve themselves. But keep recency separate and visible. It is the only one of the three that tells you about the future rather than the past.

Recency predicts. Frequency confirms. Monetary sizes the prize. In that order.

Refresh discipline

Scores are recomputed nightly against a rolling twelve-month window, not a calendar year. A calendar-year window makes every customer look worse every January and produces a fake win-back surge that wastes a month of budget.

Questions

Should third-party marketplace orders count toward frequency?

Count them, but tag them. A customer with eight marketplace orders and zero direct orders has a real habit, just not with your ordering channel. They belong in a conversion campaign, not a win-back, and the offer should be about ordering direct rather than about ordering at all.

What about customers with no order history but an email signup?

They sit outside RFM entirely. Put them in a separate prospect track with its own short journey. Folding them into R1/F1 pollutes your lapsed segments and inflates your list size in a way that flatters the reporting and helps nobody.

Does RFM work for a single location?

Yes, and arguably better. A single store has one trade area, one menu and one rhythm, so the bands are cleaner. What changes at multi-unit scale is that you must score within each store, because a 30-day gap means something different in a college town than in a suburb.

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