Big orders are a distraction from long-term Shopify store success

One thing the RFM analysis will teach you is that the biggest spenders aren't always the best customers.

How recently and frequently a customer buys are more important.

Big spenders are nice when they buy but if they are only one-time customers you won't get much long-term benefit from them. They'll help you out this time but are then gone.

A big problem if you have to court those customers or bend-over backwards to get their order.

A better customer is one who comes back regularly on a consistent schedule. Every month, every other month, even every 12 months can make them better customers. Each time they buy you have the opportunity to reinforce their behavior, e.g. great customer service, fast shipping, stellar product, strong post-purchase follow-up.

That reinforcement creates buying habits that will persist in the long-term and spread through word-of-mouth.

Something that a one-time transaction, even a large one, will have a difficult time with.

In RFM-world, the first two numbers are for the Recently and Frequency. The higher the better. In Repeat Customer Insights those are shown visually in the Customer Grid and segmented for you into customer segments.

Market to and reinforce the behavior of the better customers in there and you'll see your store perform better.

Eric Davis

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Topics: Customer segmenting Rfm

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