How Repeat Customer Insights uses RFM segmenting for Shopify stores

I frequently get asked about how Repeat Customer Insights works and what goes into its customer scoring.

Repeat Customer Insights uses three values in its grading:

  • How recent a purchase was made (Recency)
  • How many purchases have been made (Frequency)
  • How much has been purchased (Monetary)

This is the classic RFM segmenting that has been used by decades in database marketing.

Each customer is graded in all three areas from 5 (best) to 1 (worst) relative to your other customers. So a customer with a Monetary of 5 means that they are in the top 20% of your customers in terms of money spent, a score of 3 would be the middle 20%, etc.

The final letter grade (A-F) each customer gets is a summary of their three grades and acts as a quick visual indicator for the customer. Recency is the most powerful factor so it makes up the majority of the letter grade.

Shopify sends me new customer and order data right away and the grading is recalculated every hour round the clock.

Have you tried out Repeat Customer Insights yet? You can with a free 14 day trial.

Eric Davis

Use cohorts to find out who the best customers are in your Shopify store

Repeat Customer Insights icon

Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.

Install Repeat Customer Insights for Shopify

Would you like a daily tip about Shopify?

Each tip includes a way to improve your store: customer analysis, analytics, traffic, SEO, customer acquisition, Rich Results, CRO... plus plenty of puns and amazing alliterations.