Table of Contents Introduction What is RFM analysis? RFM customer segmentation, it's all about the buckets Calculating RFM and the RFM analysis The three components of the RFM score Calculating Recency Calculating Frequency Calculating Monetary Calculating the RFM score Making sense of the RFM score Each column matters What...
Customer retention is an over-arching process that you need to build into your Shopify store. You can't just add a loyalty program and call it the day. It's something you have to consider at all times and work to improve your retention at all levels. I like to think of...
Every Monday as part of my app's Monday Morning Metrics, I get a number of auto-replies from Shopify stores. They are the generic emails that go out from their helpdesks: "due to high email volume, we'll get back to you within a few business days" That's a missed opportunity. Instead...
When you start sending incentives to customer segments, there's one segment you should be cautious with: Recent customers. Recent customers are a great segment but for other purpose. Not for incentivized sales. In RFM recent customers are customers with a high R value (5). In other models they might be...
A Shopify store using Repeat Customer Insights asked about how to use the app to attract new customers. Since the app doesn't know about new customers until their first order, you'll want to use the app's analyses to help identify which kinds of customers and marketing worked. You'll benefit from...
After three years of growth, two of our apple trees finally grew flowers which mean we might have the first apples later this year. All that research, planning, and waiting might finally pay-off. The same goes for a lot of strategic opportunities you come across in your Shopify store. Opportunities...
Your customers are your store's lifeblood. Without them, your business would fail. After growing your business past a certain size it becomes difficult to remember every customer. That's why it's important for a business to start segmenting customers early on. Without segmenting, you'll have difficulty providing the different levels of...
In Repeat Customer Insights I developed the Customer Grids so it's easier to see visually how RFM works to segment your customers. By combining two RFM components, the three grids are able to describe a large amount of customer behavior in one area. Recency-Frequency (RF) Grid The Recency-Frequency Grid shows...
Using cohorts in your customer analysis is a great way to start segmenting customers. Cohorts can be confusing though. They sound a lot more advanced then they really are. What is a cohort? A cohort is simply a group of people who show similar behavior at the same time. Everyone...
One problem with analytics systems like Repeat Customer Insights is knowing where to focus. The systems can assemble a lot of data, convert it into information, and present it in numbers, charts, or graphs. But going from there to actual business decisions and changes is the gap. In the app...
Each tip includes a way to improve your store: customer analysis, analytics, customer acquisition, CRO... plus plenty of puns and amazing alliterations.