You can create different labels based on your customers' RFM scores to help other teams understand each customer's position in the sales cycle and take appropriate actions. Each segment can have up to 8 labels and Zoho CRM offers a set of predefined labels, which are:

Note: The RFM scores given here are just for representation. Admins must set the values according to their current business needs. 

You can edit these predefined labels or delete them and add new labels. For example:

Choose the segmentation module, contribution module, and linking field

1. Recency field:  Any date or date-time field that represents the last or the most recent purchase date. For example, "Sale Closing Date", "Purchase Completion Date", "Deal Closed On", or "Sold On".

1. Frequency field:  You can select either By count or By field .
   
1. If you choose By count , the system will automatically consider all the records that are associated with the segmenting record, i.e. the number of deals associated with a contact or the number of products bought by a customer.
   
2. If you choose By field , you have to manually select a field that indicates the frequency, for example, "Number of Products Bought", "Number of Items Sold", "Number of Deals Won", or "Number of Service Requests Received".
   
3. Note that the frequency field must be in the segmenting module, not the contributing module.
   

1. Monetary field: Any currency field that indicates an amount. For example, "Order Value", "Cost", "Purchase Amount",  or "Deal Amount". If a customer has purchased multiple products or a contact has multiple closed deals, then system will automatically compute an aggregate amount and derive a value for the monetary field.

• Set the recency score to 5 if the sale closing date was between this week and last week or was last month. Set the score to 4 if the most recent purchase time was before yesterday, and so on.
  
  
• If the number of purchases is more than 8, the frequency score is 5. If it is between 5 and 10, the score is 4, and so on.
  
  
• Set the monetary score to 5 if the amount spent is more than $1500, set it to 4 if it is between $800 and $1200, and so on.
  
  

The data set will be sorted in order. For example, for the recency score, the data set will be sorted from the most recent purchase to the oldest purchase. For example, if the most recent purchase was a week ago and the oldest purchase was 6 months ago, then CRM will set these two timelines as the boundaries and draw the percentiles within this range. For frequency, the data set will be sorted from most frequent to least frequent, and for monetary it will be sorted from the highest amount to the lowest.

Note

1. Automatic calculation is only available in the Ultimate edition of Zoho CRM.
   
2. The most recent date, the highest frequency, and highest value are subject to change, so the system will recalculate the data range and the number of records automatically once a day.
   
3. You can change the scoring criteria from automatic to manual or vice-versa. Doing so will reset the computed values to their defaults and the scores will be recalculated based on the criteria set.
   
   

Adjust the percentile bar

The default percentile ranking is set to the 20th percentile for even record distribution. However, you can reposition the slider to change the percentile ranking, if required.

You can reset the score range after defining the criteria. This will cause the scoring to be reset to the default values.

You can also reposition the score range slider, but this will remove all custom settings and use the default settings that apply to the revised score range. All custom labels will be removed and adjusted to the default labels in the revised score.

1. Go to Setup > Experience Center > Segmentation.
   
2. Click  Create New Segmentation and specify the following settings in  the  Customer Segmentation  page:
   
   • Segmentation name: Enter a name.
     
   • Segmentation Module: Choose the segmentation module from the dropdown list.
     
   • Select All Records or Based On Criteria.
     If you select Based On Criteria, set the criterion. 
     
   • Contribution Module: Choose a module from the dropdown list for the RFM values.
     
   • Select All Records or Based On Criteria.
     If you select Based On Criteria, set the criterion.
   • Linking field: Select a field from the dropdown list. (e.g. Customer)
     
   • RFM Fields Entry:
     
     • Recency field : Select a field from the dropdown list.
       
     • Frequency field: Select By count or By field. If you select By field, select the field from the dropdown list.
       
     • Monetary value: Select a field from the dropdown list.
3. Click  Next . 
   You will be redirected to choose the customer scoring.
   
4. In  How would you like to set criteria for customer scoring?  choose  Automatic or  Manual.
   
   • If you choose Automatic, move the slider to change the default percentile rank for each R, F, and M level and click Compute.
     
   • If you choose Manual, click +Add Criteria and then select the field and specify the value and click Submit. Repeat this for each rank.
     
5. Click Next. You will be redirected to label the segments.
   
6. Click Add New Label and enter the label name and the RFM values.
   
7. Click Submit.
   
8. Click Publish to configure the segmentation.
   

Editing a segment

1. Linking
   
2. Recency
   
3. Frequency
   
4. Monetary
   

Note that while editing the configuration, you will not be allowed to change the segmented and contributing modules.