Retention is the backbone of sustainable growth. One of the most effective ways to segment customers for retention is RFM analysis—Recency, Frequency, and Monetary value.

Why RFM Matters for Lifecycle Marketing

• Helps identify high-value customers

• Improves personalisation and targeting

• Reduces churn by engaging at-risk customers

This guide will show you how to build, understand, and act on RFM segments in Klaviyo to maximise retention.

What Are Klaviyo RFM Segments? 

What RFM Means

RFM breaks down customer behaviour into three parts:

• Recency: How recently someone made a purchase.

• Frequency: How often do they buy from you?

• Monetary: How much money do they spend?

Why RFM Beats Basic Segmentation

Unlike basic segmentation (like “all customers”), RFM is precise:

• Tailored targeting: Send messages that match customer behaviour.

• Better alignment with LTV goals: Focus on high-value customers to increase lifetime value (LTV).

To explore other smart ways to group your audience for lifecycle success, check out our 3 Klaviyo Segmentation Strategies to Boost DTC Sales.

How Klaviyo Calculates RFM Scores 

Access Requirements and Setup Checklist

Note: Learn how to set this up in Klaviyo’s RFM Report Access Guide. The RFM report is currently available only to accounts with ecommerce integrations (like Shopify) and sufficient historical order data. You’ll also need to meet minimum thresholds for orders and customer volume.

Understanding RFM in Klaviyo

Klaviyo assigns scores from 1 to 3 for each RFM metric:

• Recency: Based on time since last order (e.g., within 180 days = 3, 365 days = 2, older = 1).

• Frequency: Based on order count (top 33% of customers = 3, middle 33% = 2, bottom 33% = 1).

• Monetary: Based on total spend (scored across the same percentiles).

How Scoring Works Behind the Scenes

• Customers are placed into percentiles based on their behaviour.

• Each customer is assigned a composite RFM score (e.g., 3-2-1).

  
  

The 6 Core RFM Segments and Campaign Examples

Here are six RFM segments, their descriptions, strategies, and campaign examples to boost retention.

Building Custom RFM Segments in Klaviyo

Step-by-Step Guide to Creating an RFM Segment

You don’t need to be a data expert to build powerful RFM segments in Klaviyo. Here’s how to do it step by step:

1. Go to the Segment Builder

   • In your Klaviyo dashboard, click "Lists & Segments" and then "Create Segment."

     
     

2. Set Conditions for R, F, and M

   Use filters to define Recency, Frequency, and Monetary:

   • Recency: Use filters like “Placed Order at least once in the last 90 days”

   • Frequency: Use “Placed Order X times over all time” to find frequent buyers

   • Monetary: Use “Value of orders is greater than £100” for high spenders

If you want to go deeper with personalisation, explore how to unlock more data power with Mastering Klaviyo Custom Properties in 12 Minutes.

3. Use AND/OR Logic

   • Combine these filters to group customers (e.g. customers who spent over £100 AND ordered 3+ times in the last 180 days).
     
     

4. Name and Save Your Segment

   • Label your segment clearly (e.g. “Champions – 3+ Orders, £100+ Spend, Last 90 Days”).

     
     

Source: Klaviyo

5. Use RFM Report for Guidance

   • If you have access to Klaviyo’s built-in RFM Report, use it to identify score groupings like 3-3-3 or 2-3-1.

Pro Tip: Use the "Preview Segment" button to make sure it’s working before activating any flows. You can also combine these scores with predictive tools—get started with our Klaviyo Predictive Analytics: AI Guide & 3 Use Cases.

Use Klaviyo Predictive Analytics for Layering

You can improve your RFM segments by layering in Klaviyo’s Predictive Analytics:

Predicted Next Purchase Date

• Combine this with Recency filters to find people who are likely to buy soon.

• Example: “Placed Order at least twice AND Predicted Next Purchase is within 14 days”

Signup Source

• Filter based on whether customers came from email, SMS, or social.

Location or Gender

• Add “Person is in location X” or “Gender is female” to make the segment more specific.

Note: Predictive features like CLV, Churn Risk, and Next Purchase Date are only available if your account has a connected ecommerce platform and enough historical data to train Klaviyo’s models.

How RFM Segments Increase ROI 

Reducing Churn With Timely Re-engagement

• Identify customers who haven't purchased recently.

• Send personalised re-engagement emails.

• Offer incentives to return.

Need help crafting that reactivation flow? See our guide to Winback Flow: 6 Tips To Re-engage Lapsed Customers.

Driving Repeat Purchases Through Personalised Upsells

• Use purchase history to recommend related products.

• Send targeted upsell emails.

• Increase average order value.

Pro Tip: After sending to your RFM segments, you can use UTM tags and tools like Google Analytics 4 to track post-click engagement and conversion performance. Learn how to do this in our full guide to Klaviyo Google Analytics Integration.

Advanced Tips & Common Pitfalls 

Automate RFM Flow Triggers

Turn your RFM segments into flow triggers in Klaviyo:

• Win-back Flows: Automatically email “At Risk” customers with limited-time offers.

• VIP Flows: Reward “Champions” with early access or loyalty perks.

• Upsell Flows: Target “Loyal” customers with product add-ons.

Add filters like Smart Sending or recent engagement to avoid over-sending. Learn more about how Klaviyo Smart Sending protects deliverability while keeping engagement high.

Layer With Predictive Analytics

Get smarter with targeting by combining RFM segments with Klaviyo’s predictive tools:

• Predicted Lifetime Value (CLV): Focus on customers who are likely to spend more long term.

• Next Expected Purchase Date: Reach out just before they’re expected to return.

• Churn Risk: Spot “Loyal” customers slipping away and send reactivation emails.

Layering makes every message more relevant and increases ROI.

Common Mistakes to Avoid

• Too Narrow Segments: Don’t over-filter—start broader, then refine.

• Ignoring Segment Changes: Customers move between segments. Review and update often.

• Overlapping Flows: Use filters to prevent duplicate messages.

• Confusing Segment Names: Use clear, simple labels that your team can act on.

For better naming structure and campaign clarity, get inspired by our 15 Email Marketing Campaign Examples to Inspire Your Next Big Win.

FAQs

1. Can I use RFM segmentation in Klaviyo campaigns, not just flows?

•  Yes. While RFM segments are often used for automated flows, you can also manually send targeted campaigns to each segment.

2. How often should I refresh my RFM segments?

•  Klaviyo updates segments dynamically based on real-time customer behaviour, so there’s no need for manual refresh. However, predictive fields (like CLV or Churn Risk) update daily and may take a little time to reflect recent changes.

3. What’s the best way to test if my RFM segments are working?

•  Start with small batch sends and track open, click, and conversion rates by segment. Adjust based on engagement and revenue.

4. Can I combine RFM with email engagement metrics?

•  Yes. Layer filters like “Opened Email at least once in the last 30 days” on top of RFM conditions to target active customers within each group.

5. What if my brand doesn’t have 500 customers yet?

•  You won’t have access to Klaviyo’s RFM reporting, but you can manually create similar segments using order count and purchase dates.

6. Do RFM segments apply to SMS as well?

•  Yes. You can use RFM segments in both email and SMS flows or campaigns. Just ensure recipients are subscribed and compliant.

Conclusion

RFM segmentation is one of the most powerful tools Klaviyo offers for brands serious about retention. Instead of blasting the same message to everyone, you can speak directly to each customer's behaviour—whether they’re Champions, Loyal, or slipping away. RFM helps reduce churn, boost lifetime value, and create more relevant, timely messaging that converts when used right. 

The best part? It’s already built into your Klaviyo account. All it takes is a smart setup and strategic thinking. If you’re stuck guessing who to target next or seeing declining repeat purchases, it’s time to turn to data, and RFM makes that easy.

Ready to elevate your segmentation game? Don’t miss our Klaviyo Custom Reports: 5 Reports Every CMO Should Build to track ROI from every segment.

Key Takeaways

• Know Your Metrics: RFM = Recency, Frequency, Monetary value—core to lifecycle segmentation.

• Score Strategically: Klaviyo auto-assigns 1–3 scores for each factor based on your real customers.

• Segment with Purpose: Use RFM scores to create targeted groups like Champions or At-Risk.

• Build Smarter Campaigns: Align messaging to each group’s behaviour and value.

• Layer with Predictive Tools: Combine RFM with Klaviyo’s predictive analytics for next-level personalisation.

• Track ROI: RFM helps you see more than opens—it drives real results like higher repeat purchase rates.

• Avoid Common Pitfalls: Don’t set conditions too narrowly, and don’t forget to review segment decay over time.

Struggling to turn one-time buyers into loyal customers?

Understand how RFM segmentation identifies your Champions, Loyalists, and Churn Risks—allowing you to take action before it’s too late. Click here to schedule a free audit with our Klaviyo experts and discover your high-LTV segments.