A lot of power comes from combining things.
Peanut butter and jelly.
Hot peppers and vinegar.
Bart and Homer.
That combining is what make RFM a powerful customer analysis model. By combining three different measurements it can cover a lot of different behavior while still being simple to understand.
(Unlike most AI or "fake-AI" systems that are too complicated for even their developers to explain).
Having three measurements also gives you a lot of other options for segmenting customers.
- RF will show who the active customers are.
- RM will show how customer activity compares to their lifetime spending.
- FM will show ordering sizes.
You get all of that information, in addition to the regular RFM segmenting just from doing a single analysis.
Analyzing your Shopify customers and calculating the scores can be time consuming though. It's easy to understand but once you get more than a few hundred customers it'll take too long to do it by hand.
But not for a computer algorithm.
Repeat Customer Insights can calculate the RFM scores for your Shopify store automatically. It refreshes them automatically regularly which is vital to get the correct results.