Is RFM Model Outdated (Emergence of RFM+ Model)

Recency, Frequency and Monetary (RFM) is the standard model used by many retailers/banks and financial institutions to segment their customers. This model is a time-tested one and has never failed.

 

So

 

The RFM is slowly becoming outdated.

Emergence of Social media, Mobile devices has made the researchers to go with the RFM+ (RFMPlus Model). The RFMPlus includes social media information, Customer Lifetime Value (CLV), Last Visit / Latency / Frequency between visits.