Understanding your RFM Segmentation

What is RFM?

RFM is a guest segmentation model built into the CDP that scores every guest on three dimensions of their booking behavior: Recency, Frequency, and Monetary value. Together, these three scores group your guests into clear, actionable segments - so you know exactly who to target, and with what kind of message.

What each dimension measures

Recency (R) - How recently did the guest last stay? A guest who checked out last week scores higher on Recency than one who hasn't stayed in two years. Recent guests are typically easier to re-engage.

Frequency (F) - How often does the guest book? A guest with 10 stays scores higher than a first-time guest. Frequency highlights your repeat and loyal guests.

Monetary (M) - How much has the guest spent? This looks at total revenue across all of a guest's stays, identifying your highest-value guests regardless of how often they visit.

Each guest gets a score on all three dimensions, and the combination determines which segment they fall into. This score always relate to your guest portfolio only.

Monetary value is factored in behind the scenes to produce the final segments shown in the Segment distribution chart, such as:

• Champions - recent, frequent, high-spending guests - your highest guests rank
• Loyal Customers - consistent repeat guests
• Potential Loyalist - recent guests showing early signs of loyalty
• New Customers - guests on their first or most recent stay
• Promising - newer guests with growing engagement
• Needs Attention - previously active guests starting to slow down
• About to Sleep - guests at risk of going inactive soon
• At Risk - valuable guests who haven't returned in a while
• Can't Lose Them - high-value guests who have gone quiet
• Hibernating - long-inactive, lower-value guests
• Lost - guests who haven't returned in a long time and are unlikely to without a strong prompt

Why it matters for your property

Not every guest deserves the same message. RFM lets you focus win-back campaigns on guests who are drifting away, reward your Champions and Loyal Customers, and nurture New Customers into repeat guests - instead of sending one generic message to your entire list. It turns your guest database into a prioritized action plan.