◾RFM Analysis
Last updated
Last updated
RFM (Recency, Frequency, Monetary) Segmentation is a feature designed to help casino operators analyze and understand player behavior. By categorizing players based on their deposit activity, RFM segmentation provides insights into how recently, how often, and how much players have deposited. This segmentation enables operators to tailor their engagement strategies to match the specific needs and behaviors of each player group.
This feature evaluates player activity over the last 30 days, providing a clear view of user segments and their current engagement levels. By analyzing these segments, operators can identify patterns in player behavior, develop targeted campaigns, and implement strategies aimed at improving retention and maximizing the value of their player base.
RFM Segmentation is available under the RFM Analysis section in the Marketing view of the Smartico platform. It provides a visual representation of player groups and offers tools to create segments directly based on these insights.
RFM analysis is a data-driven approach to segmenting users based on three core dimensions:
Recency (R): How recently a player made their last deposit.
Frequency (F): How often a player deposits or engages with the platform over time.
Monetary (M): The total value of a player's deposits, reflecting their financial impact on your platform.
With these metrics, you can identify distinct user segments and create targeted strategies to enhance their value and engagement.
Eligibility: Only users who made a deposit in the last 30 days are scored. Ineligible users are marked as “Churned by Definition.”
RFM Scoring:
Recency: Ranks players based on days since their last deposit.
Frequency: Evaluates average deposit intervals.
Monetary: Assesses cumulative net deposits.
Each user receives a score from 1 to 5 in each category, with 5 being the highest. Combining these scores determines their segment.
For example:
Champions: R=5, F=5, M=5 — recent, frequent, and high-value depositors.
Visualizing Your RFM Segments:
Graphical Representation: The segmentation chart provides an intuitive visualization of player segments, with:
X-Axis (Recency): Days since the last deposit.
Y-Axis (Frequency and Monetary): Combined score reflecting engagement and spending power.
Segment Positioning: Players with high scores in all categories, like Champions, appear in the top-right corner, while segments such as At-Risk or Need Attention occupy other positions based on their metrics.
Segment Details: Hovering over or selecting a segment provides a detailed breakdown, including the size and percentage of active players it represents.
Each player will have their own property for RFM Analysis which can be used in segmentation and in campaigns.
Campaigns can also be triggered by the event of "RFM segment update"
Interactive Features:
Segment Insights: Click any segment to view its characteristics and suggested strategies for engagement.
Create Targeted Campaigns: Use the Create Segment button to define custom user journeys, such as tailored tournaments or personalized offers, directly from the analysis.
1. Champions
Traits: Recent, frequent depositors with high spending.
Strategy: Reward them with exclusive bonuses, VIP perks, and personalized experiences to maintain their loyalty.
2. Loyal Customers
Traits: Consistent depositors with moderate to high spending.
Strategy: Strengthen their loyalty through personalized rewards programs and early access to new features.
3. Losing But Engaged
Traits: Recently active but showing declining deposit frequency.
Strategy: Rekindle interest with time-limited offers and challenges.
4. At Risk
Traits: Previously active but no recent deposits, declining engagement.
Strategy: Encourage their return with cashback offers or personalized reactivation campaigns.
5. Need Attention
Traits: Low-frequency players with small deposit amounts.
Strategy: Target them with promotions tailored to their favorite games.
6. Promising Customers
Traits: New users with moderate deposits, showing growth potential.
Strategy: Provide incentives for early engagement and introduce community challenges.
7. Potential Loyalists
Traits: Recently acquired players with initial deposits of moderate size.
Strategy: Gradually increase rewards and tailor game recommendations.
8. Hibernating Customers
Traits: Previously active players who have disengaged.
Strategy: Reconnect by offering nostalgic incentives like free spins on their favorite games.
Q: How often are RFM categories are recalculated?
They are recalculated daily
Q: What metrics are taken as the basis for RFM segmentation?
We use classic RFM approach and generally accepted practice. "Days since last deposit" - for Recency, "Average deposit interval" - for frequency, "Lifetime net-depoist" - for Monetary
Q: Are the segment boundaries rigid?
No, they are dynamic and adopting according to the specific of your audience.
