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From the Little Stream Software blog

When using RFM you end up with 125 different customer segments.

When using Customer Grades you end up with 5 segments.

The Customer Grids is a middle step between the two. Taking advantage of the Automatic Segments and RFM, it converts your entire customer list into a visual dashboard of your customers.

There are three Customer Grids so all RFM values are covered:

• Recency - Frequency
• Frequency - Monetary
• Recency - Monetary

Every customer is included someplace in each grid, so every customer has multiple behaviors measured. Combining that with the Grade and RFM segments, you now have several different segmenting options you can use to target any customer.

The color coding in the Customer Grids carry through to the Customer Analysis report so they are easy to remember and notice.

The Customer Grid is the high-level view of your segments where you can see the relative size of each segment, it's changes, and the flowing of customers from segment to segment.

Eric Davis