Finding your best customers and keeping them is a simple, yet powerful retention strategy.
A really useful outcome of using RFM analysis is that it can tell you exactly who they are. With a 1 to 5 scoring model, like what my Shopify app uses, customers scored with 555 are the top 1% of your customer base.
They've ordered recently so they are still active. They've ordered the most times. They've spent the most in their customer lifetime.
I wouldn't be surprised to see these customers accounting for a large portion of your sales overall.
These are the 1% customers you want to do whatever you can to keep.
Eric Davis
Go beyond Average Order Value
Go beyond just Average Order Value and learn how your customers perform in various metrics.