We probably don’t need to tell you of the tons of ways in which your users differ from each other. It’s a well-documented fact and something you, as a business, understand all too well (and sometimes even struggle with).

While this understanding keeps getting better as your business flourishes, the same cannot be said about being able to successfully streamline your offerings to your users’ needs, always. You know for a fact that you can’t just offer everything to everyone, and so you resort to bucketing (categorization) of your users.

Now, as simple as it sounds, talk to your marketing folks and you’ll get a better sense of just how difficult can it be, if not for some tools and proven methods to bucket your customers – the most potent and quite common being the RFM (Recency, Frequency & Monetary) Analysis.

RFM Analysis has become the go-to segmentation technique for offering relevant solutions to different user groups as well as communicating with them.

But wait!

What if you’re in the media business where how much content your users consume is equally (if not more) important to how many subscriptions have you sold?

This is where a modified version of RFM Analysis takes precedence, known as RFE (substituting Engagement for Monetary) Analysis. It helps businesses establish the engagement patterns of their users thereby differentiating between the least and the most engaged users.

Let’s have a look at how you can go about implementing it!