How to identify, track, and retain repeat customers in Shopify

A Repeat Customer Insights customer was asking me last week how to identify, track, and keep their high-repeat buyers.

My answer is specific to the app but you can still follow it if you have a way of measuring customer purchases and grading them by how recently and frequently they order. The app uses the RFM algorithm which is designed for this exact thing.

High repeat buyers are pretty easy to track. They’ll have a high Frequency score (5s or 4s out of 5).

In the Recency-Frequency (RF) Customer Grid they’ll be in the segments:

  • Loyal
  • VIP (RF)
  • Defection risk loyal

There’s also the Defected loyal segment which will be the customers who used to order frequently, but haven’t in a long time. You might not be able to recover any of them but it could be useful to analyze them and see why they haven’t come back (e.g. service issue, product problem, price change).

To start retaining them I’d recommend clicking each of those segments and creating a campaign to target them.

One campaign per segment is a good balance between fine-grained segmenting and broad broadcasting.

The segment descriptions will include some ideas for offers and targeting. Defection risk loyal will probably be one with a huge ROI if you can recover them but the Loyal and VIP ones should be easier campaigns in-general.

If you’d like help building these customer segments, Repeat Customer Insights can create them all for you. It uses the existing data in your Shopify store to discover the customer behavior automatically without you having to set anything up.

It also comes with a 14-day free trial so you can see how it works before paying.

Eric Davis

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