How is a Shopify customer assigned automatic segments?

Recently a subscriber was asking how the Customer Grid in Repeat Customer Insights knows which segments to give to each customer.

There are three Customer Grids in the app:

Each grid combines two parts of the RFM scores. One score is for the vertical columns, one score is for the horizontal rows.

Every customer is given a three-part RFM score by the RFM algorithm (e.g. 5 4 1). That score will place them in one spot in each grid based on the column and row numbers. e.g. RF at 5 by 4, FM at 4 by 1, RM at 5 by 1.

Each location in the grids is assigned a specific automatic segment. That gives every customer three different automatic segments. e.g. Loyal, Minnow, Recent low spender.

Each of those segments comes with advice based on the customer's behavior to help you reach and incentivize them to order again.

Customer Grids and the RFM analysis are automatically created by Repeat Customer Insights too. You don't have to set anything up or know how to partition the data. Just install the app into your Shopify store and it'll import and analyze your data for you.

Eric Davis

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Topics: Customer analysis Customer segmenting

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