In using RFM codes,companies know that recency is the best predictor of future purchases.

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RFM (Recency, Frequency, Monetary) analysis is a widely used customer segmentation technique that enables marketers to identify groups of customers based on their past buying behavior. Among the three factors, recency is considered the most important because customers who have made a purchase recently are more likely to buy again than those who haven't. Therefore, companies use RFM codes to prioritize customers who have made a purchase recently for targeted marketing campaigns aimed at increasing repeat purchases.

In Using RFM Codes,companies Know That Recency Is the Best