Using customer grades to define valuable customer behavior

Customer grading is one customer analysis that Repeat Customer Insights includes in its suite.

This is where each customer is graded with a letter grade based on their behavior:

The benefit of this grading over something like RFM is how simple it is to understand. Only five segments. Customers gradually improve from F to A with good behavior. They decay from A to F with bad or no behavior.

It's also easy to compare customers against each other. An A customer is objectively better than a B customer.

Eric Davis

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Topics: Customer grading Customer segmenting

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