Recency, frequency, monetary value (RFM) is a tool used to identify a firm's best clients based on the nature of their spending habits. It can help ypu reasonably predict which customers are likely to purchase your products again, how much revenue comes from new (versus repeat) clients, and how to turn occasional buyers into habitual ones.

The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions within a given time period. It is vital to understand what a business can do to improve its customer satisfaction.

Through the application of the Pareto principle, we can find in which products marketing and sales efforts must go. In business, this principle states that, 20 percent of products usually account for about 80 percent of dollar sales value; so do 20 percent of customers.