When you're segmenting your customers it can become clear that some segments are more valuable than others. The Automatic Segments in Repeat Customer Insights are no different.
These are the segments that are important to watch carefully. I've provided the RFM values if you're wanting to do more detailed analysis.
Your best customers:
- VIP (Recency: 5, Frequency: 5)
- Loyal (Recency: 3, 4, 5, Frequency: 4 or 5)
- Recent whale (Recency: 3, 4, or 5, Monetary: 5)
- Whale (Frequency: 1 or 2, Monetary: 4 or 5)
Customers who have potential to be great:
- Potential loyal (Recency: 4 or 5, Frequency: 2 or 3)
- High AOV (Frequency and Monetary varies in lock-step, you'll need the app to see them)
Segments to watch for defection detection:
- Defection risk loyal (Recency: 2, Frequency: 4 or 5)
- Defection risk whale (Recency: 2, Monetary: 5)
Any segment can be useful when you're focusing your optimizations but the handful above at great overall segments to keep your eye on at all times.
Eric Davis
Segment your customers automatically with RFM
Segmenting your customers has always been touted as a powerful marketing tool but many stores avoid it because it can be time-consuming.
Repeat Customer Insights will automatically segment your entire customer base for you based on the valuable data Shopify has already collected for you. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.